Sony Acquires 10% Stake in Kadokawa, Forming Strategic Business Alliance
Sony has officially become the largest shareholder of Kadokawa Corporation, following the formation of a strategic capital and business alliance. This significant move was cemented with Sony's acquisition of approximately 12 million new shares for around 50 billion JPY, bringing their total ownership to about 10% of Kadokawa's shares. Despite earlier reports in November from Reuters suggesting Sony's intent to fully acquire Kadokawa, this partnership ensures that Kadokawa maintains its independence.
The alliance is poised to enhance collaboration between the two companies, with a focus on maximizing the global value of their intellectual properties (IPs). As detailed in their press release, the partnership will involve joint investments and promotional activities aimed at broadening the international reach of Kadokawa's IPs. Key initiatives include the global promotion of live-action films and TV dramas based on Kadokawa IPs, co-production of anime-related projects, and the global distribution and publication of Kadokawa's anime and video game works through the Sony Group.
Takeshi Natsuno, CEO of Kadokawa Corporation, expressed enthusiasm about the alliance, stating, "We are very pleased to conclude this capital and business alliance agreement with Sony. 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 growth and success of both companies in the global market.
Echoing this sentiment, Hiroki Totoki, President, COO, and CFO of Sony Group Corporation, emphasized the synergy between Kadokawa's rich IP portfolio and Sony's global entertainment capabilities. He stated, "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's Diverse Portfolio of IPs
Kadokawa Corporation, a prominent Japanese conglomerate, has a significant footprint in various multimedia sectors. Renowned for its anime and manga publishing, as well as its involvement in movies, television, and video game production, Kadokawa boasts a rich catalog of IPs. Notable among these are popular anime titles such as Oshi no Ko, Re:Zero, and Dungeon Meshi/Delicious in Dungeon. Additionally, Kadokawa is the parent company of FromSoftware, the developer behind acclaimed games like Elden Ring and Armored Core. FromSoftware recently announced at The Game Awards that a co-op standalone spin-off, Elden Ring: Nightreign, is slated for release in 2025.
