A subsidiary of Kadokawa, FromSoftware, recently announced that it will raise funds through third party allotment on Aug 31, 2022. This will be subscribed by Sixjoy Hong Kong, an investment company affiliated with Chinese company Tencent. Along with them, Sony Interactive Entertainment will also be joining them. They will be raising around 36.4 billion yen.
FromSoftware is a wholly owned subsidiary of Kadokawa currently, however, after raising funds, Kadokawa’s shareholding will drop to 69.66%. Sixjoy Hong Kong will own 16.2% and Sony Interactive Entertainment will own 14.09%.
FromSoftware was established in 1986 and is known for its games. Along with ELDEN RING, the company has created SEKIRO: SHADOWS DIE TWICE, DARK SOULS series, and other famous games.
The funds to be received this time will be used to enhance game development and deployment capabilities.
It will also strengthen and build a system for in-house publishing since it has high profit margins.
The company will also expand its media mix strategy in the global market and play a role in the creation and development of IP in the KADOKAWA Group’s business portfolio.
Tencent Group is a Chinese IT giant that specializes in games development. Sixjoy has an equity stake in KADOKAWA and is one of the company’s majority shareholders along with Sony Group.
Sony invested 5 billion yen in KADOKAWA in February 2021 through a third-party allotment of new shares to strengthen the long-term relationship and cooperation in the field of animation and games. Due to this Sony has acquired approximately 2% of the company. This investment will further strengthen the connection between the two companies by focusing on the game business.
Source: Animation Business