In a significant move within the entertainment sector, Sony is set to enhance its stake in the renowned Japanese company Kadokawa, acquiring a substantial 10 percent ownership. On January 7, 2025, the tech and gaming powerhouse will purchase 12,054,100 new shares at a price of Y4,146 each, amounting to an investment of Y49.98 billion (approximately .7 million). This acquisition will elevate Sony’s holdings from a previous 2.01 percent to 9.68 percent of Kadokawa’s stock.
Strategic Shareholding
Upon completion of this transaction, Sony will emerge as Kadokawa’s largest shareholder. However, it is important to note that this position is still behind the Korea Securities Depository – Samsung and The Master Trust Bank of Japan, which hold 10.01 percent and 9.76 percent, respectively. Kadokawa has clarified that these two entities hold shares as trust property, suggesting that they do not qualify as major shareholders in the conventional sense.
This development follows speculation regarding Sony’s intentions to acquire Kadokawa outright. Both companies have addressed these rumors, confirming that, for the time being, Kadokawa will maintain its independence.
Collaboration on Creative Projects
The partnership is expected to pave the way for collaborative efforts between Sony and Kadokawa, particularly in adapting Kadokawa’s intellectual property (IP) into live-action films and television shows. Additionally, the two companies aim to work together on anime projects and expand the distribution of Kadokawa’s anime content.
“We are very pleased to conclude this capital and business alliance agreement with Sony,” remarked 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 maximizing 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’s president, COO, and CFO, Hiroki Totoki, expressed similar enthusiasm, stating, “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 realize Kadokawa’s ‘Global Media Mix’ strategy, aimed at maximizing the value of its IP, and Sony’s long-term vision, ‘Creative Entertainment Vision.’”
