Tencent Expands Stake in Kadokawa

Tencent, the Chinese tech and entertainment behemoth, has further solidified its stake in Kadokawa by acquiring additional shares. According to Nikkei, Tencent has recently purchased an extra 1.11% of stock in the Japanese media company, elevating its total ownership to 7.97%. Tencent described this move as part of a “capital and business alliance between the submitter and the issuer.” This transaction was carried out through Tencent’s subsidiary, SixJoy Hong Kong Limited.

This development comes in the wake of Sony also upping its investment in Kadokawa amid conjecture about potentially acquiring the media company. Ultimately, Sony increased its stake to 10%, establishing itself as the largest shareholder of Kadokawa.

Kadokawa’s CEO, Takeshi Natsuno, expressed enthusiasm about the partnership with Sony, stating, “We are very pleased to conclude this capital and business alliance agreement with Sony.” He emphasized that this collaboration is anticipated to not only bolster Kadokawa’s capabilities in creating intellectual property (IP) but also broaden its media mix opportunities. With Sony’s support for global expansion, Kadokawa hopes to bring its IP to a wider audience worldwide. Natsuno conveyed confidence that this alliance would significantly enhance the value of Kadokawa’s IP and its corporate worth in the medium to long term. He affirmed the company’s commitment to ensuring that the collaboration with Sony yields substantial results in the international market.