Sony's Strategic Investment in Kadokawa: A New Business Alliance

Sony has become Kadokawa Corporation's largest shareholder, solidifying a strategic capital and business alliance. This partnership involves Sony acquiring approximately 12 million new shares, representing roughly 10% of Kadokawa's total shares, for approximately 50 billion JPY. This acquisition, combined with shares previously acquired in February 2021, strengthens Sony's position within the company. Crucially, Kadokawa remains an independent entity.

The alliance aims to leverage both companies' intellectual property (IP) globally. Key collaborative initiatives include:

• Joint investments and promotions for global expansion of live-action films and TV dramas based on Kadokawa IPs.
• Co-production of anime projects.
• Global distribution and publishing of Kadokawa's anime and video game works through the Sony Group.

Takeshi Natsuno, Kadokawa Corporation's CEO, expressed enthusiasm, stating the alliance will enhance IP creation capabilities and expand media mix options, ultimately reaching a wider global audience.

Hiroki Totoki, Sony Group Corporation's President, COO, and CFO, highlighted the synergy between Kadokawa's extensive IP portfolio and Sony's global entertainment reach, emphasizing the alignment with Kadokawa's "Global Media Mix" strategy and Sony's "Creative Entertainment Vision."

Kadokawa's significant holdings in anime, manga, film, television, and video game production include prominent IPs like Oshi no Ko, Re:Zero, Dungeon Meshi/Delicious in Dungeon, and its ownership of FromSoftware, the developer behind Elden Ring and Armored Core. The recent announcement of Elden Ring: Nightreign, a co-op spin-off, further underscores the potential of this partnership.

This alliance promises significant growth and expansion for both companies in the global entertainment market.