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

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 significant partnership involves Sony acquiring approximately 12 million new shares, representing around 10% of Kadokawa's total shares, for roughly 50 billion JPY. This acquisition, coupled with shares previously obtained in February 2021, strengthens Sony's position within the company. While earlier reports suggested a potential full acquisition, this alliance ensures Kadokawa maintains its independence.

The agreement aims to leverage the combined strengths of both companies to amplify global IP value. Key collaborative initiatives include:

• Joint investments and promotions to expand the global reach of Kadokawa's intellectual properties (IPs), particularly through live-action films and TV dramas.
• Co-production of anime-related projects.
• Global distribution and publishing of Kadokawa's anime and video game works through the Sony Group's extensive network.

Kadokawa CEO Takeshi Natsuno expressed enthusiasm, stating the alliance will enhance IP creation capabilities and broaden media mix options, ultimately delivering IPs to a wider global audience. Sony Group President, COO, and CFO, Hiroki Totoki, echoed this sentiment, emphasizing the synergy between Kadokawa's extensive IP portfolio and Sony's global entertainment reach, aligning with Kadokawa's "Global Media Mix" strategy and Sony's "Creative Entertainment Vision."

Kadokawa's substantial portfolio includes prominent IPs across anime, manga, film, television, and video game production. Notable examples include the anime series Oshi no Ko, Re:Zero, and Dungeon Meshi, and the company's ownership of FromSoftware, the developer behind Elden Ring and Armored Core. Further strengthening this partnership, FromSoftware recently announced Elden Ring: Nightreign, a co-op spin-off slated for release in 2025.

This alliance marks a significant step for both companies, promising a future of enhanced creativity and global expansion in the entertainment industry.