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Answerman - Should FUNimation Be On NASDAQ?

Brand wrote:

Question is this "new" streaming service any different than their current streaming service? Or is it just a re-branding?

Same streaming service, just a rebrand. It was done in order to "appeal to a wider audience", acting as if the older model didn't work (it did).

the overhaul is coming in May. its apparently huge, and, among other things, will make navigating the site much easier

If a North American anime company needs funds, I think it's easier/better for them to just do a Kickstarter than play with fire on the stock market.

I think Funimation going public would be more detrimental to them than beneficial. They would have to sterilize all of their anime shows to make more "acceptable" to the mainstream and they may be forced to air any new shows they pick up while they're airing in Japan, upsetting both their licensors and their fans in the process. The hefty risk just isn't worth the complicated effort.

Mr. Oshawott wrote:

I think Funimation going public would be more detrimental to them than beneficial. They would have to sterilize all of their anime shows to make more "acceptable" to the mainstream and they may be forced to air any new shows they pick up while they're airing in Japan, upsetting both their licensors and their fans in the process. The hefty risk just isn't worth the complicated effort.

They wouldn't need to "sterilize" their shows. Playboy is a publicly traded company and has been for years. Other adult entertainment companies have been publicly traded, and major entertainment businesses like CBS and Time Warner air shows with full frontal nudity and explicit sex scenes on their premium cable networks.

angelmcazares wrote:

I doubt Funimation is that big of a company. Facebook is a big company, but didn't they lose a ton of money when they went public?

They did at first...

People have such nightmare scenarios. Tobacco companies are on stock exchanges. They got caught selling a product that they knew killed people. They still sell this product. They just put a sticker on it that says, "hey, you may die." Same goes for pharmaceutical companies. They advertise products where the side effects are, "suicidal thoughts and/or actions" and tell you to please stop taking the medicine if this occurs. They're on the stock exchange.

Universal Pictures released a movie called American Pie that's about high school boys trying to have sex before prom. Most of them accomplish this... onscreen... sometimes with full frontal nudity of what are supposed to be high school girls. And that passed.

But you all seriously think your cartoon gore and boobs is where the line in the sand will be drawn and a company with something like that will be forced to alter their product in order to be exchange worthy?

I'm not saying they should but some of the scenarios are a bit tin foil hat combined with really not knowing much about stock at all and general phobia of successful businesses.

Seriously, though, it makes sense. I simply assumed that anime/manga companies weren't big enough for NASDAQ to be a concern for them (like there was some kind of size or wealth requirement; shows what I know).

Sure, Funi could go public and buck those trends, but that increases the odds that they'll be taken over by corporate raiders (who tend to make money whether the companies they take over succeed or fail in the long run) saying, "hey, this company isn't as profitable as it could be," and proceed to slash and burn everything in the name of increasing shareholder returns.

If a North American anime company needs funds, I think it's easier/better for them to just do a Kickstarter than play with fire on the stock market.

Justin's reasons aside, I'd have to say hell no. While NASDAQ is likely a better fit than the S&P or NYSE, just because a company wants to issue an IPO, you have to be accepted by an exchange. Your ability to list or be delisted is at the discretion of the exchange (I had a blue list in my 401K get delisted off the NYSE because they went seven quaters in a loss).

Frankly, I'd rather not risk some American investor activist decide he wants to take a stand against perceived idol or seiyu abuse in the industry and try to reform change on his own.

I'm not against any change in the industry that would be best for those working in the industry, but feel those changes need to be addressed by the Japanese in Japan, not by some feel good lefty in America imposing his moral high grounds on the east.

bj_waters wrote:

Seriously, though, it makes sense. I simply assumed that anime/manga companies weren't big enough for NASDAQ to be a concern for them (like there was some kind of size or wealth requirement; shows what I know).

Zalis116 wrote:

Sure, Funi could go public and buck those trends, but that increases the odds that they'll be taken over by corporate raiders (who tend to make money whether the companies they take over succeed or fail in the long run) saying, "hey, this company isn't as profitable as it could be," and proceed to slash and burn everything in the name of increasing shareholder returns.

If those guys come in, FUNimation might not even do anime anymore. They might switch to an entertainment medium that's more profitable.

GokuMew2 wrote:

If a North American anime company needs funds, I think it's easier/better for them to just do a Kickstarter than play with fire on the stock market.

Crowdfunding comes with its own risks too. It's not free money from the fans. You have to give back eventually too, and the backers become the people you answer to. Annoy them, and you burn bridges with your fanbase directly.

With all the people Keiji Inafune has angered, for instance, unless Mighty No. 9 and Red Ash sell very well, he'll befacing an uphill battle with his games afterwards due to the bad reputation he's received. Farsight Studios is getting diminishing returns on its Kickstarter campaigns because of a failure to deliver the games they promised to its backers and because people are getting suspicious about why it has to keep turning to crowdfunding (which it does about once per year).