Sony Becomes Kadokawa's Largest Shareholder as a \"Business Alliance\"

Sony's Strategic Investment in Kadokawa: A New Business Alliance

Sony has become Kadokawa Corporation's largest shareholder through a newly formed strategic capital and business alliance. This agreement sees Sony acquiring a significant stake, solidifying its position in the Japanese entertainment market.

Kadokawa's Independence Remains Intact

Sony's investment, totaling approximately 50 billion JPY for around 12 million new shares, brings its total shareholding in Kadokawa to roughly 10%. This follows a previous investment in February 2021. While Reuters reported earlier this year that Sony aimed to acquire Kadokawa, this alliance ensures Kadokawa maintains its independence.

The partnership focuses on maximizing the global value of both companies' intellectual property (IP). Collaborative efforts will include:

• Joint investments and promotions.
• Global expansion of Kadokawa's live-action films and TV dramas.
• Co-production of anime projects.
• Global distribution and publishing of Kadokawa's anime and video game works through the Sony Group.

Takeshi Natsuno, Kadokawa Corporation's CEO, expressed enthusiasm, highlighting the alliance's potential to enhance IP creation and global reach. Hiroki Totoki, Sony Group Corporation's President, COO, and CFO, emphasized the synergy between Kadokawa's extensive IP portfolio and Sony's global entertainment distribution capabilities.

Kadokawa's Extensive IP Portfolio

Kadokawa Corporation is a major player in Japanese entertainment, encompassing anime and manga publishing, film, television, and video game production. Its notable IP holdings include popular anime titles like Oshi no Ko, Re:Zero, and Dungeon Meshi/Delicious in Dungeon, and it's the parent company of FromSoftware, the developer behind Elden Ring and Armored Core.

Recently, FromSoftware announced Elden Ring: Nightreign, a co-op spin-off slated for release in 2025 at The Game Awards.