Sony Set to Become Major Shareholder in FromSoftware’s Parent Company Kadokawa

Sony and Kadokawa have entered into a “strategic capital and business alliance,” as revealed in a joint announcement released on Thursday.

Come January 7, 2025, Sony is poised to become Kadokawa’s biggest stakeholder. They plan to buy a significant 12,054,100 new shares from Kadokawa, investing a hefty 50 billion yen (approximately $320 million) in the process. Coupled with earlier stock acquisitions in February 2021, this move will elevate Sony’s ownership to 10% of Kadokawa.

“We’re thrilled to form this capital and business alliance with Sony,” expressed Takeshi Natsuno, Kadokawa’s chief operating officer, in the news release. “This partnership is anticipated to not just elevate our IP creation capabilities but will also boost our IP media mix opportunities. With Sony’s backing for worldwide reach, we’re excited to bring our IP to a global audience. We’re confident that this alliance will significantly enhance the value of our IP and our company over the medium to long term. We are committed to harnessing this collaboration with Sony to make substantial impacts in the global market.”

This development follows closely after Kadokawa acknowledged a Reuters report suggesting Sony’s intent to completely acquire the company. The gaming community saw this as potentially transforming titles from Kadokawa’s subsidiary, FromSoftware, into exclusives for Sony’s PlayStation. Additionally, it would have extended Sony’s influence considerably within the manga and anime sectors, given Kadokawa’s strong presence there.

Looking forward, Sony and Kadokawa are discussing plans to adapt Kadokawa’s IP into live-action films and TV shows, while also enhancing the global reach of Kadokawa’s existing products. Although this doesn’t technically hinder Sony from eventually acquiring Kadokawa entirely, a separate update for Sony’s investors clarified that no further share acquisitions are on the table for now.

With this alliance, “we are set to become the leading shareholder of Kadokawa,” commented Hiroki Totoki, Sony’s chief operating officer and chief financial officer. “Kadokawa consistently produces a diverse range of IP, including light novels, comics, games, and anime. By melding Kadokawa’s rich IP portfolio and creative ecosystem with Sony’s strength in promoting global entertainment advancements, particularly in anime and games, we aim to collectively advance Kadokawa’s ‘Global Media Mix’ strategy and Sony’s ‘Creative Entertainment Vision.’”