Sony becomes Kadokawa's largest Shareholder with $318m investment

Sony is set to invest ¥50 billion ($318 million) into From Software owner Kadokawa Corporation as part of a strategic capital and business alliance agreement.

Through the deal, Sony will become Kadokawa's largest shareholder, owning approximately 10% of its shares, including those previously purchased in February 2021.

Both companies have a history of collaboration and their future partnerships will focus on joint investments, discovering new creators, and promoting media mixes of their IP. 

Planned initiatives include adapting Kadokawa's IP like Elden Ring into live-action films and TV shows, co-producing anime, expanding global distribution of Kadokawa's anime through Sony, publishing Kadokawa's games, and developing human resources for virtual production.

Setting up global expansions 

“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."

Sony Group Corporation president, COO and CFO Hiroki Totoki added: “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 realise Kadokawa's 'Global Media Mix' strategy, aimed at maximising the value of its IP, and Sony's long-term vision, 'Creative Entertainment Vision'.”