Sony Becomes the Ideal Stakeholder for FromSoftware’s Kadokawa

Sony has increased its holdings in Kadokawa, the parent company of FromSoftware, as the two organizations have agreed to create a “strategic capital and business partnership”.

Sony previously owned a stake in the business, but with this latest investment, it now controls approximately 10 percent of the company’s shares, making it its largest stakeholder, though a complete takeover is not on the table as once anticipated.

The two companies plan to adapt Kadokawa’s intellectual properties into live-action films and television dramas worldwide, co-produce anime projects, enhance the global distribution of Kadokawa’s anime productions, further expand the publishing of its games, and develop human assets.

As indicated in a press release from Sony: Kadokawa and Sony “aim to enhance [their] collaboration to maximize both companies’ IP value on a global scale and enable broader and deeper cooperation,” focusing on content, discovering new creators, and “the media mixtures of both companies’ IP”.

Sony has acquired 12,054,100 new shares in Kadokawa for about 50 billion yen, which is approximately £251.7 million. Chinese conglomerate Tencent owns 6.86 percent of shares compared to Sony’s 10 percent.

Kadokawa holds a prominent position in anime publishing, positioning Sony as a formidable player in the industry on a global level.

Furthermore, expanding Kadokawa’s gaming portfolio is particularly exciting for gamers, with the potential for new Bloodborne and Demon’s Souls titles developed with Sony, alongside significant film adaptations of FromSoftware’s games.

Eurogamer has reached out to FromSoftware for additional comments.

“We are delighted to finalize this capital and business partnership agreement with Sony,” said Kadokawa CEO Takeshi Natsuno. “This partnership is anticipated to not only enhance our IP creation capabilities but also broaden our IP media mix options with Sony’s assistance in global growth, allowing us to present our IP to a wider audience worldwide. We believe this will significantly aid in maximizing the value of our IP and boosting our corporate worth in the mid- to long-term. We are committed to ensuring our collaborative endeavors with Sony yield remarkable success in the global market.”

“Through this capital and business partnership, we will become the largest stakeholder in Kadokawa, which consistently produces a diverse array of IP, including publications and books, such as light novels and comics, as well as games and anime,” remarked Sony president, COO, and CFO Hiroki Totoki. “By integrating Kadokawa’s rich IP and creation ecosystem with Sony’s strengths, which has fostered the international growth of a variety of entertainment, including anime and games, we p