Sony
has
increased
its
shares
in
Kadokawa,
a
major
Japanese
company
that
owns
FromSoftware
as
well
numerous
anime
companies,
and
is
entering
into
an
agreement
to
great
expand
Kadokawa’s
influence.

A
few
weeks
ago
it
emerged
that

Sony
was
seemingly
making
overtures
toward
Kadokawa,
seemingly
intended
on
trying
to
acquire
the
company.
Both
Kadokawa
and
Sony
officially
commented,
with
Kadokawa
confirming
that
it
had
recieved
a
letter
of
intent
from
Sony.

Today
both
companies
confirmed
that
Sony
has
increased
its
shares
as
the
pair
enter
into
a
“strategic
capital
and
business
alliance.”
Sony
previously
held
shares
in
Kadokawa
but
has
now
increased
its
holdings
to
to
10%,
making
it
the
biggest
shareholder.
Tencent
is
the
second
largest,
holding
6.8%
of
the
shares.

It’s
still
possible
that
Sony
is
intended
on
a
full
buyout
eventually
and
is
simply
taking
a
slower
approach.

The
deal
between
the
two
companies
goes
far
beyond
just
shares
though,
as
Sony
is
entering
into
an
agreement
with
Kadokawa
to
help
Kadokawa
adapt
its
many
IP
into
live-action
film
and
TV,
as
well
as
co-producing
anime
works
and
expanding
Kadokawa’s
distribuition
network.

As
Sony’s
press
release
says,
the
two
companies
“intend
to
further
strengthen
[their]
collaboration
to
maximise
both
companies’
IP
value
globally
and
facilitate
wider
and
deeper
collaboration.”

I
can
only
assume
they
cut
off
the
press
release
round
about
the
time
Sony
started
talking
about
world
domination.

As
a
gamer
my
natural
inclination
is
to
focus
on
the
videogame
aspects
of
this
deal,
of
which
there
are
a
few.
Kadokawa’s
gaming
jewel
is,
of
course,
the
mighty

FromSoftware
who
has
made
the
likes
of
Elden
Ring
and
Sekiro.
But
Kadokawa
also
owns
other
successful
studios
such
as
Spike
Chunsoft,
the
developers
of
Dragon
Ball:
Sparking
Zero
which
managed
to
sell
over
3
million
copies
over
24
hours.

It’s
worth
remembering
that
Sony
also
owns
a
14%
stake
in
FromSoftware.

However,
as
successful
as
its
gaming
division
is
Kadokawa
actually
generates
far
more
from
its
anime
and
managa
projects
than
it
does
videogames,
which
is
likely
the
biggest
reason
for
Sony
seeking
to
work
with
the
company.
Sony
has
already
make
some
inroads
into
anime
over
the
years,
but
Kadokawa
is
a
dominant
force
in
the
market.
Sony’s
distribuition
presence
in
the
west
will
undoubtedly
help
Kadokawa
expand
its
anime
empire
across
the
globe.

I
also
think
it’s
fair
to
assume
Sony
will
want
to
have
some
of
its
own
IP
adapted
by
Kadokawa.
Horizon
anime
and
manga,
anyone?

“We
are
very
pleased
to
conclude
this
capital
and
business
alliance
agreement
with
Sony,”
said
Kadokawa
CEO
Takeshi
Natsuno.
“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
maximising
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.”

“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,”
said
Sony
president,
COO
and
CFO
Hiroki
Totoki.
“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’.”