Sony has signed a Strategic Capital and Business Alliance Agreement with KADOKAWA, which it says is for the purpose of “acquiring 12,054,100 new KADOKAWA shares.”
The ownership of these shares, which cost “approximately 50 billion yen” (~US$318.7 million), as well as the shares that were acquired back in February 2021 makes Sony KADOKAWA’s largest shareholder. The percentage of the shares Sony holds amounts to 9.68%, while its voting right percentage is 10.11%. The former is lower than the percentages held by Korea Securities Depository – Samsung (10.01%) and The Master Trust Bank of Japan, Ltd. (9.76%), but as noted by KADOKAWA, these entities are “trust business operators holding the shares as trust property, and so it has been determined that they do not constitute major shareholders or the largest major shareholder.”
Sony’s press release says, “KADOKAWA and Sony historically have collaborated on various projects, and through this capital and business alliance, intend to further strengthen our collaboration to maximize both companies’ IP value globally and facilitate wider and deeper collaboration, such as potential joint investments in the content field, joint discovery of new creators, and joint promotion of further media mixes of both companies’ IP.”
It adds that there are plans to “discuss specific initiatives for collaboration, such as initiatives to adapt KADOKAWA’s IP into live-action films and TV dramas globally, co-produce anime works, expand global distribution of KADOKAWA’s anime works through the Sony Group, further expand publishing of KADOKAWA’s games, and develop human resources to promote and expand virtual production” in the future.
Sony also says that there are no plans for further share acquisitions for the moment, and that the “capital and business alliance is not anticipated to have a material impact on Sony’s consolidated financial results for the fiscal year ending March 31, 2025.”
In a press release quote, KADOKAWA CEO Takeshi Natsuno said that the alliance will “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.”
Meanwhile, Sony President, COO, and CFO Hiroki Totoki said, “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.’”
Sony, or the Sony Group, had previously owned 2.01% of KADOKAWA’s stakes. Its Sony Interactive Entertainment subsidiary owns 14.09% of the shares of notable game developer From Software, of which KADOKAWA is the majority shareholder. Reuters reported in November that the two parties were in talks about an acquisition deal.
Light novel readers may recognize KADOKAWA best for their publishing business. Titles like Re: ZERO Starting from Another World, My Happy Marriage, Days With My Stepsister, and Sword Art Online are published under KADOKAWA-related labels.
While it was founded in 1945 as a publishing house, KADOKAWA has since involved itself in other pursuits as well. Its website lists fields like IP creation, animation and film, gaming, web services, and education.
Anime-wise, KADOKAWA has lately been aiming for the production of more titles, as well as more seasons and episodes. As part of its anime ambitions, the company bought the animation production studio Doga Kobo in July, adding it to its collection of anime studios that include subsidiaries ENGI, Studio KADAN, Raging Bull, and Bellnox Films, as well as affiliated studio Kinema Citrus.
KADOKAWA also owns the anime media outlet Anime News Network, which it bought in 2022.
In April 2024, it opened the KADOKAWA Manga Academy and KADOKAWA Anime/Seiyuu Academy in collaboration with Vantan.
KADOKAWA isn’t the first anime-related business in Sony’s arsenal. Sony acquired anime streaming platform Crunchyroll through the Funimation Global Group a few years back, and owns entertainment company Aniplex through Sony Music Entertainment. The animation production studios A-1 Pictures and CloverWorks are subsidiaries of Aniplex.
Update: Added more details regarding Sony’s share percentage.
Update 2: Slightly tweaked phrasing of the last paragraph’s starting sentence.
