AT&T revealed yesterday that it has agreed to sell the anime streaming platform Crunchyroll to Sony’s Funimation for a total of $1.18 billion.

The company stated that Crunchyroll boasts 90 million registered users and 3 million paid subscribers. Initially launched in 2006, the platform began as a destination for anime content uploaded and subtitled by fans—often sourced from unofficial channels—but has evolved into a leading provider of officially licensed anime, alongside related games, manga, and merchandise.

Nevertheless, AT&T/WarnerMedia’s current streaming approach appears to be centered exclusively on its HBO Max service. The company has discontinued independent streaming services, such as FilmStruck, and has transitioned DC Universe away from streaming towards a focus on digital comics.

Consequently, Funimation represents a more suitable environment. The company also concentrates on anime distribution, with Sony having secured a controlling interest in 2017. Currently, it functions as a partnership between Sony Pictures Entertainment and Aniplex, a division of Sony Music Entertainment.

“We are pleased to welcome Crunchyroll to the Sony group,” commented Tony Vinciquerra, Chairman and CEO of Sony Pictures, in an official statement. “Leveraging Funimation and our valued collaborations with Aniplex and Sony Music Entertainment Japan, we possess extensive knowledge of this worldwide artistic medium and are ideally situated to provide exceptional content to viewers globally. Combined with Crunchyroll, we will establish the premier experience for enthusiasts and expanded prospects for creators, producers, and publishers in Japan and beyond.”

The announcement also featured remarks from Tony Goncalves, WarnerMedia Chief Revenue Officer, who expressed his pride in “the Crunchyroll team and their achievements in the digital media landscape in a relatively brief timeframe.”