Sony to Acquire Stake in Japanese Entertainment Giant Kadokawa

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

Sony has become Kadokawa Corporation's largest shareholder, solidifying a strategic capital and business alliance. This partnership, detailed below, allows Kadokawa to maintain its independence while leveraging Sony's global reach.

Kadokawa's Continued Independence

Sony's acquisition of approximately 12 million new shares, costing roughly 50 billion JPY, combined with shares acquired in February 2021, grants them approximately 10% ownership. While Reuters previously reported Sony's aim to acquire Kadokawa, this alliance ensures Kadokawa remains an independent entity.

The agreement focuses on maximizing both companies' intellectual property (IP) value globally through collaborative efforts. These include:

• Joint investments in and promotion of live-action films and TV dramas based on Kadokawa IPs.
• Co-production of anime-related works.
• Global distribution and publishing of Kadokawa's anime and video game works via the Sony Group.

Takeshi Natsuno, Kadokawa Corporation's CEO, expressed enthusiasm, stating the alliance will enhance IP creation and global reach. Hiroki Totoki, Sony Group Corporation's President, COO, and CFO, highlighted the synergy between Kadokawa's IP ecosystem and Sony's global entertainment expertise, aligning with Kadokawa's "Global Media Mix" strategy and Sony's "Creative Entertainment Vision."

Kadokawa's Extensive IP Portfolio

Kadokawa Corporation is a major Japanese conglomerate with significant holdings in anime, manga, film, television, and video game production. Its notable IPs include Oshi no Ko, Re:Zero, Dungeon Meshi/Delicious in Dungeon, and, importantly, it's the parent company of FromSoftware, the developer behind Elden Ring and Armored Core. FromSoftware recently announced Elden Ring: Nightreign, a co-op spin-off slated for 2025 at The Game Awards.