Tencent Expands Stake in Kadokawa

Chinese tech behemoth Tencent has recently increased its stake in Kadokawa, a well-known Japanese media company. According to reports from Nikkei, Tencent’s latest move saw them purchasing an additional 1.11% of shares, bumping their ownership to 7.97%. Tencent has indicated that this acquisition is part of a strategic “capital and business alliance” between the two companies, facilitated through its subsidiary, SixJoy Hong Kong Limited.

This development comes hot on the heels of media buzz about Sony potentially eyeing Kadokawa for acquisition. Instead of a full buyout, Sony opted to boost its stake, now holding 10% and securing its position as the major stakeholder in Kadokawa.

At the time Sony increased its involvement, Kadokawa’s CEO Takeshi Natsuno expressed enthusiasm about the alliance. “We’re thrilled about this partnership with Sony,” he remarked. “This alliance is poised to not only enhance our capabilities in generating intellectual property but also expand our IP media mix with Sony’s global backing. With their help, we aim to reach a global audience and boost the value of our IP, strengthening our corporate value in the long term. We are committed to making sure our collaboration with Sony yields significant success in the international market.”