Since 1985, Studio Ghibli has shaped the imaginations of several generations with masterpieces such as Spirited Away, Princess Mononoke or The Wind Rises. But a chapter is closing: an official merger notice, reported by GameBiz, confirms that TMS Entertainment will absorb its subsidiary Telecom Animation Film. Once the transaction is finalized, all of Telecom’s “rights and obligations” will come under TMS’s direct management, bringing an end to a discreet but crucial partnership. Ghibli regularly called on Telecom for key backgrounds and animation, an artisanal contribution that shaped the visual identity of numerous films.

This reorganization appears to be closely linked to Telecom’s financial difficulties. In its latest fiscal year, which ended in March 2025, the studio accumulated significant debt and reported a net loss of 346 million yen (approximately $2.3 million). By contrast, TMS Entertainment is in stronger financial health, having paid out more than 2.091 billion yen (approximately $16 million) in dividends, a sign of comfortable cash reserves. Founded in 1975, Telecom remains associated with major franchises: as a co-producer of Lupin III, it also supported the Detective Conan series and its films, including Detective Conan: One-Eyed Flashback (2025).

In terms of its legacy, Telecom played a decisive role in Princess Mononoke (1997). At its recommendation, Ghibli—which had long been committed to traditional methods—incorporated computer graphics and digital painting, resulting in approximately 15 minutes of computer-generated imagery in the final cut. This can notably be seen from the opening, with Ashitaka and the “tatari-gami,” through to the CG-animated black snakes on his arm: a feat designed to create “CG that doesn’t look like CG,” despite a budget that nearly placed the studio in jeopardy. Finally, Telecom’s last theatrical release was Lupin III: The Immortal Bloodline (June 27, 2025), which had generated around $1.17 million in worldwide revenue by January 2026, and its last major series was The Seven Deadly Sins: Four Knights of the Apocalypse (2023), whose second season aired from October 6 to December 29, 2024.