Sony Becomes Majority Shareholder in FromSoftware Parent Kadokawa, No Full Takeover for Now

ign.com:

Sony has invested 50 billion yen (approx. $318 million) in FromSoftware parent company Kadokawa, putting the brakes on a full takeover for now.

With the investment, Sony becomes the majority shareholder in Kadokawa, with 10% of the company’s shares. Chinese megacorp Tencent is next in-line.

Kadokawa and Sony have formed what the pair described as a ‘Strategic Capital and Business Alliance,’ with the goal to boost Kadokawa’s long list of intellectual properties globally.

The announcement of the deal includes vague corporate speak about how the two companies plan to work together in the future, but there is a line about adapting Kadokawa’s IP into live-action films and TV dramas globally, co-producing anime works, and further expanding the publishing of Kadokawa’s games.

That line in particular has already sparked speculation that Sony may help realise a live-action Elden Ring movie or TV series of some kind, but it’s worth pointing out that much of Sony’s interest in Kadokawa has to do with its anime business, as opposed to its video game business.

Sony boss Hiroki Totoki commented: "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.'"

Last month, financial experts said the PlayStation maker might have been put off the deal due to the cost of having to acquire all of Kadokawa, rather than the parts it was actually interested in.

Kadokawa was reportedly only interested in doing a deal with Sony if it bought the entire