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 significant partnership promises exciting developments in the entertainment industry.

Sony's 10% Stake in Kadokawa

Kadokawa Remains Independent

This alliance saw Sony acquire approximately 12 million new Kadokawa shares for roughly 50 billion JPY. Combined with shares acquired in February 2021, Sony now holds approximately 10% of Kadokawa's total shares. While Reuters reported earlier this year that Sony aimed to acquire Kadokawa, this partnership ensures Kadokawa's continued independence.

The agreement focuses on maximizing both companies' IP value globally. Collaborative efforts will include: joint investments and promotions; bringing Kadokawa's live-action films and TV dramas 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 strengthen IP creation capabilities, increase media mix options, and deliver IP to a wider global audience. He is confident this collaboration will significantly benefit both companies in the global market.

Sony Group Corporation's President, COO, and CFO, Hiroki Totoki, highlighted the synergy between Kadokawa's extensive IP and Sony's global entertainment reach, particularly in anime and games. This collaboration aims to realize Kadokawa's "Global Media Mix" strategy and support Sony's "Creative Entertainment Vision."

Kadokawa's Impressive IP Portfolio

Kadokawa Corporation is a major Japanese conglomerate with significant holdings in anime, manga, movies, television, and video game production. Its impressive portfolio includes popular anime IPs such as 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.

FromSoftware recently announced at The Game Awards that a co-op standalone spin-off of Elden Ring, titled Elden Ring: Nightreign, is slated for release in 2025.