It was previously reported that Sony intends to acquire Kadokawa, the parent company of FromSoftware, the Elden Ring developer. Sony has increased its stake in the company to around 10%, which makes it the highest shareholder. The recent deal doesn’t equate to a full acquisition and Kadokawa will continue to remain an independent company.
The PlayStation maker said through a press release that it plans to “discuss specific initiatives for collaboration, such as initiatives to adapt Kadokawa’s IP into live-action films and TV dramas globally, co-produce anime works, expand global distribution of Kadokawa anime works through the Sony Group, further expand publishing of Kadokawa games, and develop human resources to promote and expand virtual production.”
ALSO READ: Arrowhead Execs React To Helldivers 2 X Killzone 2 Cosmetics Backlash
While Kadokawa has several video game subsidiaries, FromSoftware remains the most popular among gamers. The company announced a new installment in the Elden Ring franchise at the December 12 The Game Awards titled “Nightreign”, a standalone adventure set in the Elden Ring universe.
“We are very pleased to conclude this capital and business alliance agreement with Sony,” said Takeshi Natsuno, Kadokawa’s CEO. “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.
“We are confident that this will greatly contribute to maximizing the value of our IP and increasing our corporate value in the mid- to long-term. We intend to do our utmost to ensure that our collaborative efforts with Sony produce great results in the global market.”
Sony acquired over 12 million new Kadokawa shares for around 50 billion yen. The allotment of the shares is expected to be completed on January 7, 2025. The last time the PlayStation maker acquired Kadokawa shares was in February 2021.
Reacting to the strategic investment, Sony Group’s president, COO and CFO, Hiroki Totoki said, “Through this capital and business alliance, we will become the largest shareholder of KADOKAWA, which consistently creates a wide variety of IP, including publications and books, such as light novels and comics, as well as games and anime.”
“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’.”
Are you excited about Sony’s increased partnership with Kadokawa Corporation? GameBaba Universe would love to hear your thoughts.
