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Sony Group has confirmed it is now the largest single shareholder in Kadokawa, in an investment deal worth around 50 billion yen ($320 million).
The agreement will increase Sony’s holding in the Japanese media conglomerate to 10%, with both entities signing a “strategic capital and business alliance” to pursue further collaboration for mutual benefit.
The deal with the parent company of FromSoftware puts a full takeover on hold, which it was reportedly open to. Sony is said to be keen to exploit opportunities around anime and video games, while a full takeover would have cost more than 10 times the amount it has shelled out for its 10% stake.
Hiroki Totoki, President, COO, and CFO of the Sony Group Corporation said:
“Through this capital and business alliance, we will become the largest shareholder of Kadokawa, which consistently creates a wide variety of IP, including publications and books, such as light novels and comics, as well as games and anime.”
He added the agreement would see the companies “work closely together” as part of separate, but aligned aspirations.
Takeshi Natsuno, CEO of Kadokawa Corporation stated, “This alliance is expected to not only further strengthen our IP creation capabilities, but also increase our IP media mix options with Sony’s support for global expansion, allowing us to deliver our IP to more users around the world.”
Sony is now the largest shareholder in KADOKAWA after acquiring 12M+ new shares, now holding 10% of the company shares pic.twitter.com/Hy5IA5VOyu
— ScreenTime (@screentime) December 19, 2024
Although the announcement was light on the finer details of the enhanced partnership, there was a mention of adapting Kadokawa’s IP into live-action films and TV shows, as well as developing anime, which would utilize Sony’s vast entertainment portfolio capability.
There is plenty of scope for growth and potential success with Kadokawa’s business interests fitting nicely into Sony’s entertainment offerings including anime, manga, TV, and film.
Kadokawa – which suffered a malicious cyberattack earlier this year – is already a significant publisher of anime, while Sony is the owner of anime streamers Crunchyroll and Funimation.
Sony and Kadokawa have a further shared interest in the prospects of FromSoftware, as the former holds a 14% minority stake, while the latter is the majority owner with around 70% of the video game developer.
Image credit: Via Midjourney
