Sony Invests in Kadokawa, Strengthening Entertainment 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 partnership, detailed below, sees Sony holding approximately 10% of Kadokawa's shares.

Kadokawa's Independence Maintained

The agreement involves Sony acquiring roughly 12 million new shares for approximately 50 billion JPY, adding to shares previously acquired in February 2021. Despite earlier speculation of a full acquisition, Kadokawa remains an independent entity.

This alliance aims to leverage both companies' intellectual property (IP) globally through joint ventures and promotional efforts. Key areas of collaboration include:

• Global expansion of live-action films and TV dramas based on Kadokawa IPs.
• Co-production of anime projects.
• Global distribution and publishing of Kadokawa's anime and video game works via the Sony Group.

Takeshi Natsuno, Kadokawa Corporation's CEO, expressed enthusiasm, stating the alliance will enhance IP creation and expand media mix options, ultimately reaching a wider global audience.

Hiroki Totoki, Sony Group Corporation's President, COO, and CFO, emphasized the synergy between Kadokawa's extensive IP portfolio and Sony's global entertainment distribution capabilities, aligning with both companies' long-term strategic visions.

Kadokawa's Significant IP Holdings

Kadokawa Corporation is a major player in Japanese entertainment, encompassing anime and manga publishing, film, television, and video game production. Its portfolio includes highly successful anime IPs such as Oshi no Ko, Re:Zero, and Dungeon Meshi, and it's the parent company of FromSoftware, the developer behind Elden Ring and Armored Core.

The recent Game Awards also saw FromSoftware announce Elden Ring: Nightreign, a co-op spin-off slated for release in 2025.