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

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

Sony has become Kadokawa Corporation's largest shareholder, solidifying a strategic capital and business alliance. This partnership, detailed below, sees Sony holding approximately 10% of Kadokawa's shares.

Maintaining Kadokawa's Independence

The agreement involves Sony acquiring roughly 12 million new shares for around 50 billion JPY. This, combined with shares acquired in February 2021, brings Sony's stake to approximately 10%. While Reuters previously reported Sony's aim to acquire Kadokawa, this alliance ensures Kadokawa remains an independent entity.

This strategic partnership aims to leverage both companies' intellectual property (IP) globally. Collaborative efforts will focus on:

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

Kadokawa CEO, Takeshi Natsuno, expressed enthusiasm, stating the alliance will enhance IP creation and expand media mix options, ultimately reaching a wider global audience. Sony Group's President, COO, and CFO, Hiroki Totoki, emphasized the synergy between Kadokawa's extensive IP ecosystem and Sony's global entertainment reach, aligning with Kadokawa's "Global Media Mix" strategy and Sony's "Creative Entertainment Vision."

Kadokawa's Extensive IP Portfolio

Kadokawa Corporation's significant presence in Japanese multimedia, encompassing anime, manga, film, television, and video game production, is well-known. Its portfolio includes prominent anime IPs such as Oshi no Ko, Re:Zero, and Dungeon Meshi/Delicious in Dungeon. Crucially, Kadokawa is also the parent company of FromSoftware, the developer behind Elden Ring and Armored Core.

Recent news from The Game Awards announced a co-op standalone spin-off of Elden Ring, titled Elden Ring: Nightreign, slated for release in 2025.