Tencent and Sony purchase shares in From Software
Interested in learning what's next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit Next. Register today.
From Software, developer of Elden Ring and Dark Souls, is the latest company to join the acquisition parade — sort of. Its parent company, the Kadokawa Corporation, decided to issue shares of its stock to Tencent Holdings and Sony Interactive Entertainment.
It’s not a full-on acquisition, as was the case with Activision Blizzard. Instead, the two companies will own a combined 30% of From Software’s stock — Tencent subsidiary Sixjoy Hong Kong will own 16% and Sony will own 14%. Tencent will be the second-largest shareholder after this happens. The Kadokawa Corporation will retain the rest of the shares — 69% — and the top shareholder position.
As for why it’s offering shares to those two companies, Kadokawa said in a press release that it’s trying to expand its development options and that it decided to “implement fund procurement by way of a third-party allotment.” It cites Tencent’s “strength in its capabilities to develop and deploy mobile games and other network technologies in the global market” and Sony’s “strength in its capabilities to deploy IP in games, videos and various other media in the global market.”
Both companies have a history of major acquisitions. This year alone, Sony acquired Bungie, Haven Studios, and Savage Games. Tencent acquired 1C Entertainment and a majority stake in Inflexion Games earlier this year. It also acquired Turtle Rock Games late last year.
GamesBeat's creed when covering the game industry is «where passion meets business.» What does this mean? We want to tell you how the news matters to you — not just as a
Read more on venturebeat.com
