Sony Becomes Kadokawa's Largest Shareholder as a \"Business Alliance\"

Sony's Strategic Investment in Kadokawa: A New Business Alliance

Sony has become Kadokawa Corporation's largest shareholder, solidifying a strategic capital and business alliance. This partnership, built upon a previous investment in February 2021, sees Sony holding approximately 10% of Kadokawa's shares after acquiring around 12 million new shares for roughly 50 billion JPY. Crucially, Kadokawa maintains its independence.

The alliance aims to leverage the combined strengths of both companies to globally expand their intellectual property (IP) portfolios. This collaboration will encompass joint ventures and promotional efforts, including:

• Global expansion of live-action films and TV dramas based on Kadokawa IPs.
• Co-production of anime projects.
• Global distribution and publishing of Kadokawa's anime and video game works through the Sony Group.

Kadokawa CEO, Takeshi Natsuno, expressed enthusiasm, highlighting the potential for enhanced IP creation and expanded media options through Sony's global reach. He anticipates significant benefits for both companies in the international market.

Sony Group President, COO, and CFO, Hiroki Totoki, emphasized the synergy between Kadokawa's extensive IP ecosystem and Sony's global entertainment expertise, particularly in anime and games. This partnership directly supports Kadokawa's "Global Media Mix" strategy and aligns with Sony's "Creative Entertainment Vision."

Kadokawa's significant portfolio includes prominent anime IPs like Oshi no Ko, Re:Zero, and Dungeon Meshi/Delicious in Dungeon, and notably, it's the parent company of FromSoftware, the developer behind Elden Ring and Armored Core. The recent announcement of Elden Ring: Nightreign, a co-op spin-off slated for 2025, further underscores the value of this alliance.

This strategic alliance promises significant growth and expansion for both Sony and Kadokawa in the global entertainment landscape.