Sony Corporation and its parent company Kadokawa have announced a strategic capital and business alliance agreement. The deal will see Sony acquire new shares in Kadokawa worth 50 billion yen by January 2025, making them the conglomerate’s largest shareholder.
The partnership aims to foster more collaborations between the two companies. Future joint ventures may include investments in content creation, discovery of new creators, and promotion of media mixes featuring both companies’ intellectual properties (IP). This could involve adapting Kadokawa’s IP into live-action films and TV dramas globally, co-producing anime works, expanding global distribution of its anime works through Sony’s network, and developing games.
The agreement is seen as a way to strengthen Kadokawa’s IP creation capabilities and expand its reach worldwide. The partnership will also enable Kadokawa to deliver its IP to more users globally, thanks to Sony’s support. The two companies have expressed optimism about the alliance, citing potential benefits for both parties.
Notably, the deal does not involve a merger, which is considered a positive development for sustainability in the short term. As there is no planned acquisition of existing Kadokawa or Sony developers’ jobs, this reduces the risk of job losses due to cost-cutting measures. This partnership is expected to pave the way for future collaborations and the growth of both companies.
Source: https://www.rockpapershotgun.com/after-much-talk-of-an-acquisition-sony-and-dark-souls-parent-kadokawa-announce-strategic-alliance