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 through a newly formed 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, combined with shares previously acquired in February 2021, solidifies Sony's position. Importantly, this alliance maintains Kadokawa's independence.

The core objective of this alliance is to leverage the combined strengths of both companies to maximize the global value of their intellectual property (IP). This collaboration will encompass various initiatives, including:

• Joint investments and promotions.
• 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 through the Sony Group.

Takeshi Natsuno, Kadokawa Corporation's CEO, expressed enthusiasm, stating the alliance will enhance IP creation and media mix options, ultimately reaching a wider global audience. Hiroki Totoki, Sony Group Corporation's President, COO, and CFO, echoed this sentiment, highlighting the synergy between Kadokawa's extensive IP portfolio and Sony's global entertainment expertise. This collaboration aims to realize Kadokawa's "Global Media Mix" strategy and align with Sony's "Creative Entertainment Vision."

Kadokawa Corporation's significant holdings across various multimedia sectors, including anime, manga, film, television, and video game production, make it a highly attractive partner. Its portfolio boasts popular anime IPs such as Oshi no Ko, Re:Zero, and Dungeon Meshi/Delicious in Dungeon, and it's the parent company of the renowned game developer FromSoftware, creators of Elden Ring and Armored Core.

The recent announcement at The Game Awards of Elden Ring: Nightreign, a co-op standalone spin-off slated for 2025, further underscores FromSoftware's and, by extension, Kadokawa's significant contributions to the gaming industry. This alliance promises exciting developments in the global entertainment landscape.