Sony is now Kadokawa’s largest shareholder

Sony has increased its shares in Kadokawa as both companies agree to a “strategic capital and business alliance.”

Sony already owned shares in the media heavyweight but following today’s announcement, it will now own around 10% of the company, making it its largest shareholder. Despite previous reports of Sony’s interest in acquiring the company, this deal does not constitute an acquisition, and Kadokawa will remain an independent entity.

In a press release, Sony claimed 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.”

For game fans, Kadokawa is best known as the parent company of FromSoftware, developers of Elden Ring.

“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 president 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 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.'”