PlayStation maker Sony is set to become the largest shareholder in FromSoftware parent company Kadokawa Corporation.
It was previously reported that Sony was in talks to purchase Kadokawa, which confirmed it received an acquisition offer from an undisclosed party in November.
Now, as noted in a press release, Sony has signed a strategic capital and business alliance agreement with Kadokawa that will see it acquire 12,054,110 new shares in the company for approximately 50 billion yen ($318.5 million).
Sony will hold 10 percent of Kadokawa’s shares following the deal. That total includes the shares Sony purchased in 2021. Sony also owns a 14.09 percent stake in FromSoftware.
Both companies said the move will maximize IP value globally and facilitate wider and deeper collaboration, including potential joint investments in the content field.
“In the future, the two companies plan 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,” adds the press release.
Back in November, Kadokawa outlined plans to expand its console and PC game publishing business, and said it was “developing a structure” to bolster its efforts in that arena.
Elden Ring’s significant contributions
The company noted that Elden Ring continues to drive “high growth” within its gaming business. The title has sold over 25 million copies worldwide since launching in 2022 and has received additional content in the form of the sprawling Shadow of the Erdtree expansion.
FromSoftware recently announced a multiplayer Elden Ring spin-off called Elden Ring Nightreign at The Game Awards 2024.
Discussing its future in the wake of the Sony deal, Kadokawa CEO Takeshi Natsuno said the company hopes to bring its franchises 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,” he added. “We intend to do our utmost to ensure that our collaborative efforts with Sony produce great results in the global market.”