Sony and Kadokawa have teamed up for what they’re calling a “strategic capital and business alliance,” as revealed in a joint statement released on Thursday.
Come January 7, 2025, Sony is set to become Kadokawa’s largest shareholder by acquiring 12,054,100 new shares from Kadokawa at a price of 50 billion yen, roughly equivalent to $320 million. This move, along with shares acquired back in February 2021, will hike Sony’s stake in Kadokawa to 10%.
“We’re thrilled to finalize this partnership with Sony,” said Takeshi Natsuno, Kadokawa’s COO, in the announcement. “This alliance is poised to not only amplify our intellectual property (IP) creation but also broaden our IP media mix opportunities, thanks to Sony’s backing for worldwide reach. This will enable us to bring our content to a global audience. We believe this collaboration will significantly boost our IP’s value and enhance our corporate growth over the medium to long term. Our aim is to capitalize on this partnership with Sony to achieve substantial results in the global arena.”
This collaboration news closely follows a prior report from Reuters, which Kadokawa confirmed, about Sony’s interest in fully acquiring Kadokawa. Such a move could potentially make renowned games from Kadokawa’s subsidiary, FromSoftware, exclusive to Sony’s PlayStation. Moreover, it would extend Sony’s influence significantly in the manga and anime industries, where Kadokawa plays a major role.
Looking ahead, Sony and Kadokawa are exploring the possibilities of adapting Kadokawa’s properties into live-action films and TV shows, while also expanding the reach of Kadokawa’s existing creations across the globe. Although there’s no current plan from Sony to acquire more shares, as per a separate update for Sony’s investors, future acquisitions aren’t entirely off the table.
Reflecting on the alliance, Sony’s COO and CFO, Hiroki Totoki, commented on how this partnership would make Sony the leading shareholder of Kadokawa. “Kadokawa is a powerhouse in creating diverse IPs, ranging from books and comics to games and anime,” Totoki expressed. “By marrying Kadokawa’s rich IP landscape with Sony’s global entertainment prowess, spanning anime and gaming, we aim to closely collaborate on executing Kadokawa’s ‘Global Media Mix’ strategy. Together, we seek to elevate the value of Kadokawa’s IP in alignment with Sony’s long-term ‘Creative Entertainment Vision.’”
