Sony Set to Become Major Stakeholder in FromSoftware’s Parent Company Kadokawa

PlayStation manufacturer Sony is poised to become the largest shareholder in FromSoftware’s parent company, Kadokawa Corporation.

It was previously reported that Sony was in negotiations to acquire Kadokawa, which verified it received an acquisition proposal from an undisclosed party in November.

As of now, as highlighted in a statement, Sony has entered into a strategic capital and business partnership agreement with Kadokawa that will enable it to acquire 12,054,110 new shares in the company for approximately 50 billion yen ($318.5 million).

Following this transaction, Sony will hold 10 percent of Kadokawa’s shares. This total includes the shares Sony acquired in 2021. Sony also owns a 14.09 percent stake in FromSoftware.

Both companies stated that this partnership will enhance the global value of their intellectual property and promote broader and deeper collaboration, including potential joint investments in the content sector.

“In the future, the two companies aim to explore specific collaboration initiatives, such as adapting Kadokawa’s intellectual property into live-action films and TV series globally, co-producing anime projects, increasing the worldwide distribution of Kadokawa’s anime through the Sony Group, expanding the publishing of Kadokawa’s games, and developing talent to support and enhance virtual production,” the press release states.

Back in November, Kadokawa revealed plans to broaden its console and PC game publishing efforts, and acknowledged it was “creating a framework” to strengthen its initiatives in that field.

Elden Ring‘s key contributions

The company noted that Elden Ring continues to drive “strong growth” within its gaming sector. The title has sold over 25 million copies worldwide since its release in 2022 and has added further content in the form of the expansive Shadow of the Erdtree expansion.

Recently, FromSoftware unveiled a multiplayer Elden Ring spinoff titled Elden Ring Nightreign at The Game Awards 2024.

Discussing its future following the Sony agreement, Kadokawa CEO Takeshi Natsuno stated that the company aims to deliver its franchises to a wider audience across the globe.

“We are optimistic that this will significantly aid in maximizing the value of our intellectual property and enhancing our corporate value in the mid to long-term,” he added. “We will strive to ensure that our collaborative efforts with Sony yield outstanding results in the global market.”

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