Sony Acquires Largest Stake in Kadokawa for Business Alliance

Sony Becomes Kadokawa's Largest Shareholder in Strategic Business Alliance

Sony has recently solidified its position as the largest shareholder of Kadokawa Corporation through a strategic capital and business alliance. This move marks a significant partnership aimed at enhancing the global reach and value of both companies' intellectual properties (IPs).

Sony Holds 10% Of Kadokawa Shares

Sony has acquired approximately 12 million new shares of Kadokawa for around 50 billion JPY. Combined with shares previously purchased in February 2021, Sony now holds about 10% of Kadokawa's total shares. Despite earlier reports from Reuters in November suggesting Sony's intent to acquire Kadokawa, the current agreement ensures that Kadokawa remains an independent entity.

The alliance is designed to strengthen the relationship between Sony and Kadokawa, with the goal of maximizing the global value of their IPs. This will be achieved through joint investments and promotions, including initiatives to bring Kadokawa's IPs to global audiences via live-action films and TV dramas, co-producing anime-related works, and expanding Kadokawa's reach through Sony's distribution and publishing networks for anime and video games.

Takeshi Natsuno, CEO of Kadokawa Corporation, expressed enthusiasm about the alliance, stating, "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." He believes this partnership will significantly contribute to the global success of both companies.

Hiroki Totoki, President, COO, and CFO of Sony Group Corporation, emphasized the synergy between the two companies, saying, "By combining KADOKAWA's extensive IP and IP creation ecosystem with the strengths of Sony, which has promoted the global expansion of a wide range of entertainment, including anime and games, we plan to work closely together to realize KADOKAWA's 'Global Media Mix' strategy, aimed at maximizing the value of its IP, and Sony's long-term vision, 'Creative Entertainment Vision.'"

Kadokawa, Rich In Notable IPs

Kadokawa Corporation, a prominent Japanese conglomerate, is well-known for its extensive involvement in multimedia sectors such as anime and manga publishing, movies, television, and video game production. The company boasts a portfolio of popular IPs, including anime like Oshi no Ko, Re:Zero, and Dungeon Meshi/Delicious in Dungeon. Additionally, Kadokawa is the parent company of FromSoftware, the developer behind acclaimed games such as Elden Ring and Armored Core.

FromSoftware recently announced at The Game Awards that a co-op standalone spin-off titled Elden Ring: Nightreign is scheduled for release in 2025, further highlighting the strength and potential of Kadokawa's IPs.