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Sony Group Corporation has announced a strategic capital and business alliance with Kadokawa Corporation, securing 12,054,100 new Kadokawa shares through a third-party allotment scheduled for Jan 7, 2025.
This acquisition, valued at approximately 50 billion yen (approx 320 million USD ), will make Sony the largest shareholder of Kadokawa, holding approximately 10% of its shares, including shares previously acquired in February 2021.
The agreement aims to strengthen global collaboration in intellectual property (IP) creation and distribution.
The alliance follows Sony’s proposal in October 2024 and discussions with Kadokawa that concluded in an agreement.
Sony confirmed that it does not plan to acquire additional shares beyond this transaction. The deal is not expected to have a significant impact on Sony’s consolidated financial results for the fiscal year ending March 31, 2025.
Both companies emphasized their intent to maximize IP value through collaboration. Kadokawa CEO Takeshi Natsuno stated that the alliance would enhance Kadokawa’s global IP creation and media mix capabilities, contributing to long-term corporate growth.
“We are very pleased to conclude this capital and business alliance agreement with Sony. 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 COO Hiroki Totoki highlighted Kadokawa’s extensive portfolio of publications, games, and anime as key assets to align with Sony’s global entertainment vision.
“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.”
The partnership includes plans to adapt Kadokawa’s IP into live-action films and TV dramas, co-produce anime works, and expand the global distribution of Kadokawa’s anime and games. The companies also aim to jointly develop human resources and virtual production capabilities.
Employee Sentiment and Corporate Dynamics
The rumors about Sony’s acquisition had broken earlier in November this year.
Within Kadokawa, the potential acquisition had elicited mixed reactions. While concerns about the potential loss of corporate independence persist among analysts and the public, employee sentiment appears to be more favorable.
Reports indicate significant excitement about the merger of Sony and Kadokawa’s anime production frameworks, with some employees expressing optimism about organizational changes under Sony’s influence.
A veteran employee remarked to Bunshun that dissatisfaction with the current administration, particularly President Takeshi Natsuno, has fueled hopes for a leadership overhaul. Natsuno’s handling of a ransomware cyberattack earlier this year, which compromised personal data of employees and users, drew criticism for its lackluster response.
The prospect of Sony taking the helm has raised expectations for improved governance and operational changes.
Kadokawa and Sony have collaborated on various projects in the past. This partnership builds on their history, with future plans including joint investments in the content field, discovery of new creators, and media mix expansions.
Sony’s involvement is expected to bolster Kadokawa’s “Global Media Mix” strategy, aligning with Sony’s long-term creative entertainment goals.
Source: Sony’s official press release
