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NEWS: Geneon to Merge with Universal Pictures Japan

You're missing the point. Geneon USA is a subsidiary of Dentsu. When Dentsu decided to withdraw from distributing and producing anime DVD's for the US this effectively shut down Geneon USA which shut down the company.

Soon after, Geneon/Dentsu signed an exclusive agreement with Funimation for Funimation to distribute the titles that were already produced as well as continue to finish publishing the rest of the series to those that hadn't been completed.

Since that deal was inked and done prior to Universal engaging in talks with Dentsu/Geneon Japan, this means (for Geneon USA) that whether Universal Japan (which is a subsidiary of NBC UNiversal, that all of Geneon USA's assets are also part of the deal, that any agreements Geneon had with Funimation would be rendered inactive or they would be voided.

When a company or corporation decides to acquire/purchase another company, they are not bound to honor any contracts that were previously agreed upon as they were not agreed upon by the new company. Now, while the new company has the right to grandfather those agreements, they most likely won't because money exchanged hands between Funimation and Geneon as part of the original contract. If Universal decides that they'll keep the contracts, Funimation may have to ink a new deal with the new company.

In either event, if this webt to court, Funimation would lose because Universal Japan would not be legally bound to honor those agreements. It's the same with industry jobs. If a steel manufacturer acquired a smaller steel manufacturer, the company that acquired it would be under no legal obligation to keep those workers. They have the right to replace those workers with their own employees. This is the way the business works.

And this will definitely have an impact on the agreement between Geneon USA and Funimation.

Because Universal is buying the majority stake. Since Universal is acquiring Geneon through this merger, they could make the simple argument that Universal plans to distribute those anime DVD's in house and since Funimation's agreement didn't include Universal then Universal can dissolve those agreements.

There's no gray area in this. Some Japanese companies may expect that, if they become the controller of pre-existing rights, that the licensees must renegotiate with them, but that's a diplomatic, non-legally binding issue. Even in the case of Libre's dispute with CPM, CPM was legally in the right (which is why there was never any legal action). CPM may have burned the bridge in the process, but their contract would have likely stood up in court just fine.*

*note that I had long since left CPM by this time and I say this as an outsider with little inside information and knowledge of the people involved, as well as previous agreements entered into.

There have been no new titles, and several of their previous titles have been lost to other distributors, like ADV and Media Blasters. If they were planning on making a comeback, they wouldn't sell off an anime with a TV deal, or several titles whose contracts likely still had a few years left.

This is all irrelevent anyway as there's nothing in that report that says anything about this merger affecting anything outside of Japan. Until it's confirmed, there is nothing that says it will have any changes with what is already in progress in the US with Geneon USA and FUNImation, or anyone. So all this lathering is for nought.

You're missing the point and you guys are even misquoting:

First, it's Geneon Entertainment, not Geneon USA. There's no such entity as Geneon USA. Take a look at ANN's own press statement: ANN Geneon Article.

Secondly, Geneon Entertainment IS indeed part of the acquired companies involved in this deal and stomping your feet isn't going to change that.

Finally, Argue all you want about it but if you also examine the packaging details of all Geneon DVD releases you will notice that every DVD lists the company as "Geneon Entertainment" NOT Geneon USA or Geneon Animation.

Geneon Company Info

When Universal acquires the company, the agreement doesn't benefit Universal so explain, in detail, why Universal wouldn't seek to have the agreement dissolved.

You're missing the point and you guys are even misquoting:

First, it's Geneon Entertainment, not Geneon USA. There's no such entity as Geneon USA. Take a look at ANN's own press statement: ANN Geneon Article.

Secondly, Geneon Entertainment IS indeed part of the acquired companies involved in this deal and stomping your feet isn't going to change that.

Finally, Argue all you want about it but if you also examine the packaging details of all Geneon DVD releases you will notice that every DVD lists the company as "Geneon Entertainment" NOT Geneon USA or Geneon Animation.

Geneon Company Info

Mohawk just doesn't get it. There's a number of factors that may end up proving to be a headache for Funimation and I'm sure that they're in negotiations with NBC Universal's Universal Pictures International Entertainment even while the merger continues to be refined.

Mohawk just keeps stating his ignorance that Geneon Entertainment USA isn't part of the deal with Universal and it is and that there are changes coming post-February 2009 and that no one who is posting in this topic knows what's going to happen.

One thing is for sure, Geneon Entertainment, is part of the deal that Universal is in discussions with to merge their two companies (Universal International and Geneon Entertainment).

When the merger goes through and the company name goes through its change, the deal with Funimation may end up costing Funimation additional costs. The repressing of the DVD's as well as the redesign of the artwork will be costs that Funimation will have to eat. Since Geneon will no longer be a functioning entity, the new company logo and information would need to be placed on the DVD releases.