MarketWatch has a new blurb up this morning about Navarre looking to sell FUNimation as it re-evaluates its plans. The general gist is that in order to move FUNimation forward so it can grow better and more, they need to get it to someplace that deals more with content creation, which is not what Navarre is focused on. They do specifically state that FUNimation has generally met expectations and several conference calls over the last few years has indicated that FUNimation has often been the main division of Navarre that boosted overall profitability.
"Company Expects to Present FUNimation Entertainment as a Discontinued Operation Beginning in the First Quarter of FY 2011"
"Navarre is pursuing a more focused strategy. Now that we have substantially reduced debt and improved operating margins, we are focusing our efforts on driving revenue, particularly in new product lines. We are concentrating all efforts on our distribution and software publishing businesses where we have significant expertise and considerable systems and physical assets that can be leveraged. The Punch! acquisition announced last week strengthens our software publishing business and demonstrates a step in our execution of this strategy," stated Cary L. Deacon, Chief Executive Officer.
FUNimation Entertainment's strategy and capital requirements are distinctly different from those of the Company's core business. While FUNimation's recent results have generally met expectations, the strategies required to grow the business include co-productions of original anime content, social networks and digital broadcasting. The Company anticipates that those plans are best executed with ownership that has assets or expertise in those areas.The Company will be discussing its going-forward strategy and financial outlook in greater detail next week in connection with its FY 2010 year end conference call.
Due to the nature of this, it's unlikely we'll hear any serious comment from FUNimation at this point on it, but the general news and comments made in the blurb will likely send what's left of fandom's mental state completely off a cliff.