Sony has acquired shares in media company Kadokawa Corporation for approximately 50 billion yen, making it the largest shareholder of the company.

Kadokawa Corporation, formerly Kadokawa Dwango Corporation, is a Japanese media conglomerate that was created as a result of the merger of the original Kadokawa Corporation and Dwango Corporation in October 2014.

On Thursday, Sony said it has signed a strategic capital and business alliance agreement that sees the Japanese entertainment giant acquiring 10 per cent of the firms’ total shares, including the shares Sony previously acquired in February 2021.

The deal aims to further strengthen the collaboration with a focus on maximising both companies’ intellectual property (IP) value globally, with developments including potential joint investments in the content field, joint discovery of new creators, and collaborative promotion of an expanded media offering from both companies’ IP.

Sony added it aims to discuss specific initiatives such as adapting Kadokawa’s IP into live-action films and TV dramas on a global scale, co-produce anime series, and expand Kadokawa’s anime global distribution including promote and expanding virtual production.

Hiroki Totoki, president, chief operating officer and chief financial officer at Sony Group Corporation said that Kadokawa has a large offering, including a wide variety of IP, publications and books, light novels and comics, as well as games and anime.

“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 realise Kadowawa’s ‘Global Media Mix’ strategy, aimed at maximising the value of its IP, and Sony’s long-term vision, ‘Creative Entertainment Vision,” he added.

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