….
Next Day.
Regal met Kun Gao at Crunchyroll's SOMA district offices, which had the energetic chaos of a successful startup - developers at standing desks, anime posters covering walls, the hum of servers processing millions of streams.
Kun greeted him with frank curiosity. "So, the film director wants to buy an anime company. I have got questions."
"Shoot. I am prepared." Regal said.
They spent four hours talking. Not pitching, just talking - about anime culture, the challenges of licensing from Japanese studios, technical infrastructure for streaming, the balance between free and paid content, merchandise opportunities, theatrical distribution possibilities.
Kun tested Regal's knowledge with increasingly specific questions:
"What's your take on simulcast versus dubbed releases?"
"Simulcast builds core fan engagement, while dubs expand the casual audience. You need both, prioritizing simulcast for initial release to compete with piracy, then layering dubs for broader reach."
"How do you handle licensing negotiations with risk-averse Japanese studios?"
"Demonstrate commitment through actions, not just words. Consistent payment terms, respectful handling of content, long-term relationship building. Japanese business culture values stability over aggressive growth."
"What's your position on fan communities and user-generated content?"
"Essential. Anime fandom is participatory - fan art, discussion forums, convention culture. The platform should enable that engagement while respecting IP boundaries. Community builds retention."
By hour three, Kun was visibly impressed. "You actually understand this industry. Most Western investors see anime as 'cartoons for nerds' and wonder why we can't just stream everything for cheap."
"I started as a webnovel writer." Regal explained. "Serial storytelling with passionate online communities. The dynamics are similar - understanding what drives fan engagement, respecting source material, building sustainable creator relationships."
"Chernin mentioned you have contacts in Japan?"
Regal showed him the Kishimoto correspondence. "We have been discussing narrative structure and character development for his Manga, while I also funded it. He knows I respect manga as a serious storytelling medium, not just content to exploit."
Kun read through several exchanges, clearly surprised by the depth. "These aren't business emails. This is genuine creative discussion."
"Because that's what interests me. Business enables creative work, not the other way around." Regal leaned forward–
"Here is my pitch: I acquire Crunchyroll for $180 million. You and your team continue operating with full autonomy. I provide creative capital for aggressive licensing deals, international expansion, technology infrastructure, and eventually theatrical distribution partnerships. My involvement is strategic guidance and resource allocation, not content decisions."
Regal shook his head slightly. "Technically, I already have one - Netflix. I could expand its reach into anime if I wanted to." He paused. "But Japanese audiences are far more likely to trust a platform that grew out of their ecosystem than one imported from the West."
He continued, measured. "More importantly, you've spent years building relationships I couldn't recreate in five. Studios trust Crunchyroll. Creators trust it. Trying to compete with that would be arrogant - and inefficient."
He met their gaze. "Partnering, or acquiring, makes far more sense than trying to outmuscle what's already working."
Kun was silent for a moment, processing. "What's your long-term vision?"
"Dominant anime streaming platform in every major market. Exclusive content that makes Crunchyroll the default destination. Original productions in partnership with Japanese studios. Theatrical distribution of major anime films. And eventually–"
Regal paused. "–Western-style animation that learns from anime's storytelling sophistication. MarvelDC animated series that match anime quality standards."
Kun raised an eyebrow. "That's…. Maybe a little grandiose for a 'long-term vision,' don't you think?"
Regal smiled faintly. "I believe in aiming high."
Kun considered him for another second, then nodded. "I do too. And honestly? That's exactly what we'd do if we had unlimited resources."
He stood and extended his hand. "If you are serious about long-term investment and giving the platform real operational autonomy, I am in."
….
December 25, 2014.
The press release of Regal's move to buy Crunchyroll was carefully worded to emphasize strategic vision rather than diversification:
LIE Studios Acquires Crunchyroll for $180 Million - Plans Major Animation Initiative.
….
LIE Studios, the production company behind films like [Spider-Man], [Iron Man], and current phenomenon [Superman], announced today the acquisition of Crunchyroll, the leading anime streaming platform, for $180 million in cash.
The acquisition represents a major strategic initiative in animation, combining Crunchyroll's anime distribution platform with LIE Studios' content production capabilities and MarvelDC Comics' IP portfolio.
"Animation is an underutilized storytelling medium in Western markets." said Regal Seraphsail, founder of LIE Studios. "Anime demonstrates what's possible - complex narratives, sophisticated character development, faithful source material adaptation. We are building infrastructure to bring that same quality and ambition to Western animation while supporting the anime industry's continued growth."
Seraphsail, who began his career as a webnovel author before transitioning to filmmaking, noted his intent to adapt his early works including Solo Leveling and Omniscient Reader's Viewpoint into animated series through partnerships with Japanese studios.
"These stories were written for serialized format and would be prohibitively expensive or technically impossible as live-action productions. Animation is the natural medium." Seraphsail explained.
Crunchyroll CEO Kun Gao emphasized operational continuity: "This partnership provides resources for aggressive international expansion and exclusive content deals while maintaining the autonomy that's made Crunchyroll successful. LIE Studios understands our industry and our audience."
The acquisition includes plans for:- Aggressive simulcast licensing deals with major Japanese studios- International expansion into European and Latin American markets- Theatrical distribution of anime films through LIE Studios' existing relationships- Original animated productions featuring MarvelDC properties- Adaptation of Seraphsail's webnovels into anime format.
….
The entertainment industry's response was... confused but intrigued.
Variety - Breaking News:
"Regal Seraphsail's $180 million acquisition of Crunchyroll represents an unexpected but potentially brilliant strategic move. Unlike typical diversification plays, this acquisition aligns with several of Seraphsail's existing assets: ownership of MarvelDC Comics, background as webnovel author, and established track record of respecting source material.
The emphasis on animation as a serious storytelling medium rather than children's entertainment is notable. Seraphsail's statement positioning anime as a model for Western animation suggests ambitions beyond simply acquiring a streaming platform.
Industry analysts note the price - 3.6x revenue for a rapidly growing subscription business - appears reasonable, possibly conservative given streaming platform valuations."
….
The Hollywood Reporter - Analysis:
"What separates this acquisition from typical Hollywood anime ventures is Seraphsail's apparent understanding of the medium.
"The Japanese animation industry has historically been skeptical of Western partners. Seraphsail's approach - maintaining operational autonomy for Crunchyroll while providing capital and distribution support - may prove more effective than traditional acquisition-and-control strategies."
….
The anime fan community's reaction was cautiously optimistic:
r/anime - "Regal Seraphsail (Superman director) just bought Crunchyroll for $180M"
u/AnimeHistorian: This is huge, and potentially very good. Context most people are missing:
| Seraphsail started as webnovel author (Solo Leveling, ORV) - he understands serialized storytelling.
| He owns MarvelDC Comics and explicitly wants to improve Western animation quality by learning from anime.
| He has kept Crunchyroll's team operational and autonomous.
This isn't Hollywood buying anime to exploit it. This is someone who genuinely respects the medium acquiring infrastructure to support it.
….
-> u/SkepticalButHopeful: I want to believe, but Hollywood has a terrible track record with anime. Remember every live-action adaptation that sucked? Yeah.
-> u/OptimisticWeeb: Difference: he is not adapting anime to live-action. He is buying the distribution platform and planning to create animation that learns from anime. Plus his whole thing with [Harry Potter] was "respect source material." That's exactly what anime fans want.
-> u/JapaneseIndustryObserver: The Kishimoto connection is legit. I am Japanese and have followed their correspondence through industry channels. Seraphsail studies manga seriously - reads raw Japanese releases, understands paneling and narrative pacing. Kishimoto respects him as a fellow storyteller, not just a businessman.
….
Twitter.
-> @AnimeNewsNetwork:
BREAKING: Film director Regal Seraphsail acquires Crunchyroll for $180M. Plans include:
| Original MarvelDC animated series.
| Adaptation of his webnovels (Solo Leveling, ORV) into anime.
| Theatrical anime film distribution.
| Aggressive simulcast licensing.
This could be transformative or disastrous. Time will tell.
-> @WebnovelFans:
WAIT. Solo Leveling and ORV are getting anime adaptations?? The author just bought an anime company to adapt his own work??? This is the most anime plot development ever and I am here for it.
-> @MarvelDCFanPage:
So DC animation might finally get consistent quality and distribution through Crunchyroll? Batman animated series on the same platform as Dragon BallZ? I... actually love this idea?
….
While the discussion on social media is going on, the first integration meeting happened at LIE Studios, with Kun and his leadership team flying down from San Francisco.
Regal gathered his core team - Darren, Samantha, Simon and even Gregor…
Yeah the person who handled the comic version of [Solo Leveling] is also here.
All of them gathered here to meet Crunchyroll's leadership.
"First thing." Regal began. "Crunchyroll operates independently. You are not subordinate to LIE Studios' film operations - you are a separate business unit with your own P&L and decision-making authority. Clear?"
Kun nodded. "More than ever. Though I would like to understand how you envision integration with MarvelDC content."
"Let's discuss that. Gregor, you handle MarvelDC Comics operations. What's the current state of animated content?"
Gregor pulled up a presentation. "We have produced scattered animated projects - Batman: Mask of Phantasm in '93, Superman animated series '96-'00, direct-to-video films sporadically. Quality varies. Distribution is fragmented - some on TV, some direct-to-video, some licensed to various platforms. No cohesive strategy either."
"That changes now." Regal said. "Going forward, all new MarvelDC animated content gets produced with Crunchyroll as primary distribution. We build libraries on the platform, create appointment viewing, and develop consistent quality standards."
"What about existing contracts?" Gregor asked.
"Honor them, don't renew them. Everything new goes through Crunchyroll." Regal turned to Kun. "From your side, what does this enable?"
"Original content that's not licensed from Japan." Kun said immediately. "We have been purely distributors of Japanese anime. Having MarvelDC IP means we can produce Western animation with anime production values - something we have wanted but couldn't justify without owned content."
"We partner with Japanese studios - Production I.G., Madhouse, others you already have relationships with - to produce MarvelDC animated series. Western IP, Japanese production expertise, Crunchyroll distribution."
Darren leaned forward. "You are creating a bridge between industries that normally don't collaborate."
"That's the goal. And it extends to my webnovels - Solo Leveling, ORV, Lord of the Mysteries. Those were written for serialized format, and could adapt naturally to anime's episodic structure."
Simon added. "This opens creative possibilities."
"That's the broader vision." Regal explained. "Cruchyroll will be the platform that connects Western and Japanese animation industries, elevates animation as a serious storytelling medium, and creates a sustainable business model for high-quality content."
….
Within three weeks of closing the acquisition, Crunchyroll announced a series of major deals that wouldn't have been possible without LIE Studios' capital:
Exclusive simulcast partnership with Shueisha for all Weekly Shonen Jump anime adaptations, including the newly announced anime.
| US markets, starting with upcoming Studio Ghibli releases.
| Production partnership with Production I.G. to create original Batman animated series "Batman: Gotham Chronicles" - Western IP, Japanese animation studio, Crunchyroll distribution.
| Technology infrastructure investment - $15 million for platform upgrades including 4K streaming capability, improved mobile apps, expanded server capacity.
| International expansion announcement - Crunchyroll launching in 15 European countries and 8 Latin American markets by year-end.
The aggressive moves immediately changed industry perception.
….
What wasn't publicly known was Regal's ongoing conversations with Japanese creators.
In early April, Kishimoto Masashi visited the US for a manga industry conference. Regal arranged to meet him in San Francisco at Crunchyroll's headquarters.
They had been corresponding for a year now, but meeting again in person was different. Kishimoto arrived with his editor and translator, only to see Regal's Japanese improve by leagues.
"Seraphsail-san." Kishimoto greeted him formally.
"Kishimoto-sensei." Regal replied with a respectful bow. "Thank you for making time to visit."
They toured Crunchyroll's offices, with Kun explaining the platform's operations and showing metrics on Naruto's performance - consistently one of the most-watched series, driving substantial subscriber acquisition.
Later, in a private conference room, they discussed the Batman co-production with Production I.G.
"I wanted your perspective." Regal said in Japanese, speaking slowly to ensure clarity. "Western superhero IP, Japanese animation studio. What makes this work versus fail?"
Kishimoto considered carefully before responding. "Respect. Most failures happen because Western companies treat anime studios like vendors - 'make this, deliver that.' Success requires treating them as creative partners. Understand their process, trust their expertise, don't force Western storytelling rhythms onto Japanese production methods."
"That's our approach." Regal confirmed. "Production I.G. has creative control over Batman's visual direction, fight choreography, pacing. We provide story outline and character requirements, they determine how to execute."
"Good. That works." Kishimoto paused. "Your webnovels - Solo Leveling, ORV. I read them. They feel more like manga than Western novels. Very visual storytelling."
Regal nodded. "That's because I learned from manga," he said simply.
Anyone familiar with his work could see it - the pacing, the framing, the way moments were built to be seen, not just read.
…and since he had already 'experienced' those stories in another visual format, he wrote without him ever needing to force it.
"It shows. These stories would work well as anime." Kishimoto looked at him seriously. "You understand our medium. Not just business - actual creative understanding. That's rare from Western companies. If you maintain that respect, this Crunchyroll acquisition could change how our industries interact."
"That has always been the end goal."
After Kishimoto left, Kun approached Regal. "That was significant. Kishimoto is gaining respect from every major creator in Japan right now. Him endorsing what we're building? That opens doors that money alone couldn't."
"Relationships matter in Japanese business culture." Regal said. "More than contracts or capital. We're playing a long game - build trust now, expand partnerships over years."
"I am amused by your methods."
….
That day a picture of Kishimoto and Regal standing with a drawing of Spider-Man, Ironman, Superman drawn by Kishimoto himself circulated online–
–Marking the beginning of something extraordinary.
.
….
[To be continued…]
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