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

Sony has become Kadokawa Corporation's largest shareholder through a new strategic capital and business alliance. This agreement significantly strengthens their relationship and opens doors for exciting collaborations.

Sony's 10% Stake in Kadokawa

Sony's acquisition of approximately 12 million new shares, costing roughly 50 billion JPY, combined with shares acquired in February 2021, grants them a 10% stake in Kadokawa. While Reuters previously reported Sony aimed to acquire Kadokawa outright, this alliance maintains Kadokawa's independence.

This partnership focuses on maximizing both companies' intellectual property (IP) value globally. Key collaborative initiatives include: joint investments and promotions; bringing live-action films and TV dramas of Kadokawa IPs to a global audience; co-producing anime; and expanding Kadokawa's reach through Sony Group's global distribution and publishing networks for anime and video games.

Kadokawa Corporation CEO Takeshi Natsuno expressed enthusiasm, stating the alliance will enhance IP creation capabilities, expand media mix options with Sony's global expansion support, and ultimately reach more users worldwide. Sony Group Corporation's President, COO, and CFO, Hiroki Totoki, emphasized the synergy between Kadokawa's extensive IP 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 is a major Japanese conglomerate with significant holdings in anime, manga, movies, television, and video game production. Its notable IP portfolio includes popular anime like Oshi no Ko, Re:Zero, and Dungeon Meshi/Delicious in Dungeon. Importantly, Kadokawa is also the parent company of FromSoftware, the developer behind Elden Ring and Armored Core. Further fueling excitement, FromSoftware recently announced Elden Ring: Nightreign, a co-op standalone spin-off, slated for release in 2025 at The Game Awards.