Kadokawa Welcomes Sony as Major Investor

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, sees Sony holding approximately 10% of Kadokawa's shares.

Kadokawa's Independence Remains Intact

The agreement involved Sony acquiring roughly 12 million new shares for approximately 50 billion JPY, adding to shares previously acquired in February 2021. Despite earlier Reuters reports suggesting a potential acquisition, Kadokawa will maintain its independence.

This alliance aims to leverage the strengths of both companies to globally expand their IP portfolios. Collaborative efforts will focus on:

• Joint investments and promotions.
• Live-action film and TV drama adaptations of Kadokawa IPs for global audiences.
• Co-production of anime projects.
• Global distribution and publishing of Kadokawa's anime and video game titles through the Sony Group.

Takeshi Natsuno, Kadokawa's CEO, expressed enthusiasm, stating the alliance will enhance IP creation capabilities and expand media mix options, ultimately reaching a broader global audience.

Hiroki Totoki, Sony Group's President, COO, and CFO, highlighted the synergy between Kadokawa's extensive IP ecosystem and Sony's global entertainment reach, aligning with both companies' long-term strategic visions.

Kadokawa's Extensive IP Portfolio

Kadokawa Corporation is a significant player in Japanese entertainment, encompassing anime and manga publishing, film, television, and video game production. Its notable IPs include Oshi no Ko, Re:Zero, Dungeon Meshi/Delicious in Dungeon, and, importantly, its ownership of FromSoftware, the developer behind Elden Ring and Armored Core.

The recent Game Awards also saw FromSoftware announce Elden Ring: Nightreign, a co-op spin-off slated for 2025.