Sony becomes Kadokawa’s major shareholder – News

We are not yet on a total acquisition, as various rumors have suggested for several weeks. But this first step could already play an important role in the future of the two companies. Thus, on Thursday, December 19, Kadokawa and Sony signed an agreement according to which Sony will acquire 12,054,100 new shares of Kadowaka, for approximately 50 billion yen (or approximately 300 million euros). In doing so, Sony becomes a key shareholder in Kadokawa, with 10% of the shares in total (which notably includes the shares already previously owned by Sony since February 2021).

With this 10%, Sony intends to benefit from greater decision-making power at Kadokawa, and the objectives have already been cited in the Japanese giant’s press release: “ KADOKAWA and Sony have historically collaborated on various projects and, through this capital and commercial alliance, intend to further strengthen their collaboration to maximize the value of both companies’ intellectual properties (IP) globally. This includes broader and deeper collaboration, such as potential joint investments in content, joint discovery of new creators, and joint promotion of new media adaptations of both companies’ IPs. In the future, the two companies plan to discuss specific collaborative initiatives, such as adapting KADOKAWA IPs into live-action films and television series globally, co-producing animated works, the expansion of the global distribution of KADOKAWA’s animated works through the Sony Group, the development of KADOKAWA’s game publishing, as well as the development of human resources to promote and expand virtual production ».

To accompany such an announcement, the two presidents joined forces for a new declaration each. Thus, Takeshi Natsuno (CEO of Kadokawa Corporation) indicates that he is “ happy to conclude this alliance agreement with Sony. It is expected to not only further strengthen our IP creation capabilities, but also increase our media mix options for our IPs with Sony’s support for global expansion. This will allow us to introduce our licenses to a greater number of users around the world. We are confident that this collaboration will greatly contribute to maximizing the value of our licenses and increasing our enterprise value in the medium and long term. We will do everything possible to ensure that our collaborative efforts with Sony produce significant results in the global market ».

No less sober, Hiroki Totoki (president, COO and CFO of Sony Group Corporation) also had his little words: “ Through this alliance, we will become the largest shareholder of KADOKAWA, which creates a wide range of licenses, including publications and books, such as novels and comics, as well as games and anime. By combining KADOKAWA’s extensive licensing ecosystem with the strengths of Sony, which has driven the global expansion of a wide range of entertainment, including anime and games, we plan to work closely together to realize the strategy KADOKAWA’s “Global Media Mix”, aimed at maximizing the value of its IPs, as well as Sony’s long-term vision, the “Creative Entertainment Vision” ».

Note that this agreement will only be effective from January 7, 2025.

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