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[Thick Thighs Save Lives]

Tokyo, Japan - KADOKAWA CORPORATION ("KADOKAWA") and Sony Group Corporation ("Sony") today signed a strategic capital and business alliance agreement, agreeing to conduct a third-party allotment by KADOKAWA to Sony on January 7, 2025, with Sony acquiring 12,054,100 new KADOKAWA shares for approximately 50 billion yen. With the acquisition of the new shares, Sony will become KADOKAWA's largest shareholder, holding approximately 10% of its shares, including the shares Sony previously acquired in February 2021.

KADOKAWA and Sony historically have collaborated on various projects, and through this capital and business alliance, intend to further strengthen our collaboration to maximize both companies' IP value globally and facilitate wider and deeper collaboration, such as potential joint investments in the content field, joint discovery of new creators, and joint promotion of further media mixes of both companies' IP. 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.

Comment from Takeshi Natsuno, Chief Executive Officer, KADOKAWA CORPORATION​

"We are very pleased to conclude this capital and business alliance agreement with Sony. This alliance is expected to not only further strengthen our IP creation capabilities, but also increase our IP media mix options with Sony's support for global expansion, allowing us to deliver our IP 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. We intend to do our utmost to ensure that our collaborative efforts with Sony produce great results in the global market."

Comment from Hiroki Totoki, President, COO and CFO, Sony Group Corporation​

"Through this capital and business alliance, we will become the largest shareholder of KADOKAWA, which consistently creates a wide variety of IP, including publications and books, such as 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 realize KADOKAWA's 'Global Media Mix' strategy, aimed at maximizing the value of its IP, and Sony's long-term vision, 'Creative Entertainment Vision.'"

https://www.sony.com/en/SonyInfo/News/Press/202412/24-1219E/

 

[Heimdall_Xtreme]

Uffff.

No

 

[ToadMan]

Well that should satisfy everyone ... for now anyway.

 

[ShaiKhulud1989]

Smart move to slowly integrate the companies instead of buying the whole company outright with all the problems and pains.

Plus it’s a rare thing for Japanese companies to merge in a Western way.

If you read the fine print it’s a soft form of a full takeover.

 

[Men_in_Boxes]

 

[Z O N E]

Basically confirmed what was mentioned in a leak before.

Sony only wanted to buy the Gaming/Anime side, whilst Kadokawa only wanted a full sale.

Sony never wanted all of Kadokawa from the beginning.

 

[lh032]

damn no drama!!!!!!

 

[Cyberpunkd]

Sony, I have a question:

 

[ShaiKhulud1989]

Sony, I have a question:

They are basically the main shareholder and probably will buy our more shares once the hype dies down, not every takeover is done in a Western way.

 

[Radical_3d]

 

[MISTER INVEIGLER]

So, there is no full buyout. Big fail imo.

 

[GHG]

Everyone can calm down now.

Kadokawa are protected this way and nothing changes.

 

[Gaiff]

Didn’t Sony already own a portion of Kadowaka? Or was it From Soft?

Edit: Just checked and it’s From at 14.09% and Kadokawa at 10%.

 

[ShaiKhulud1989]

So, there is no full buyout. Big fail imo.

Keiretsu - Wikipedia

en.wikipedia.org

 

[Radical_3d]

Everyone can calm down now.

Kadokowa are protected this way and nothing changes.

 

[GrayChild]

FROMSoftware remain independent from any of the major console manufacturers. That's a good news.

 

[FunkMiller]

Good. This corporate consolidation shit is ruining the industry. Fuck both Sony and Microsoft for their continued strategies.

 

[Goalus]

So will there be an Aloy skin in Elden Ring?

 

[GHG]

Sony, I have a question:

Kadokawa wanted them to buy everything and Sony didn't need or want everything they have.

They ultimately decided it wasn't worth taking on the huge risk and liability a complete buyout would incur just to own From Software (and any of the other individual assets they might have wanted).

 

[Venom Snake]

Finally some fucking good news.

 

[Radical_3d]

Sony's acquisition Kadokawa is CANCELLED!!!!!! They will form strategic alliance instead

...and Sony becomes Kadokawa largest shareholders, owning 10% of the company

Sony Group Corporation and Kadokawa Corporation to form strategic capital and business alliance

Sony Group Corporation has signed a strategic capital and business alliance agreement with Kadokawa Corporation to conduct a third-party allotment on January 7, 2025 to acquire 12,054,100 new share…

www.gematsu.com

REJOICE gamers!!!

Kotaro’s thread lives alone.

 

[Killjoy-NL]

Good. This corporate consolidation shit is ruining the industry. Fuck both Sony and Microsoft for their continued strategies.

Didn't Kadokawa approach Sony?

 

[hinch7]

Good. From should stay independant and Sony away from owning any more large anime publications.

 

[Gaiff]

Sony, I have a question:

Kadowaka wanted a ring on their finger, but Sony insisted on a first date at McDonald’s.

Didn't Kadokawa approach Sony?

I thought Sony sent the letter of intent?

 

[Banjo64]

Soon they will be port begging FromSoftware games .. LMAO

So does begging for FromSoftware games soon

Soon will reduce to 80%

Uhhm FromSoftware uhmmm

 

[ShaiKhulud1989]

Kadokawa wanted them to buy everything and Sony didn't need or want everything they have.

They ultimately decided it wasn't worth taking on the huge risk and liability a complete buyout would incur just to own From Software (and any of the other individual assets they might have wanted).

Once again, Japanese companies very rarely engage in Western practices of immediate full takeover. It’s basically Sony forming its own keiretsu.

 

[jm89]

All that drama for nothing

 

[Killjoy-NL]

Kadowaka wanted a ring on their finger, but Sony insisted on a first date at McDonald’s.


I thought Sony sent the letter of intent?

Rumor: FromSoftware Owner Kadokawa May Have Approached Sony Themselves, To Block A Hostile Takeover From Kakao - Gameranx

That's right folks, this whole thing is now drawing kpop into it too.

gameranx.com

Haven't really followed this at all though.

 

[GHG]

I thought Sony sent the letter of intent?

Rumor: FromSoftware Owner Kadokawa May Have Approached Sony Themselves, To Block A Hostile Takeover From Kakao - Gameranx

That's right folks, this whole thing is now drawing kpop into it too.

gameranx.com

Pretty much standard practice for Japanese companies that become subject to foreign hostile takeovers.

 

[balls of snow]

Druckman x Fromsoft collab in the cards now.

 

[Z O N E]

Smart move to slowly integrate the companies instead of buying the whole company outright with all the problems and pains.

Plus it’s a rare thing for Japanese companies to merge in a Western way.

If you read the fine print it’s a soft form of a full takeover.

Literally won't happen. Sony was never interested in anything besides the entertainment portion of Kadokawa. They even pretty much admit it:

Hiroki Totki, President, COO and CFO, Sony Group Corporation:

"Through this capital and business alliance, we will become the largest shareholder of KADOKAWA, which consistently creates a wide variety of IP, including publications and books, such as 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 realize KADOKAWA's `Global Media Mix` strategy, aimed at maximizing the value of its IP, and Sony's long-term vision, `Creative Entertainment Vision.`"

 

[GHG]

All that drama for nothing

At least there won't be an "anime monopoly" now though.

 

[ShaiKhulud1989]

Literally won't happen. Sony was never interested in anything besides the entertainment portion of Kadokawa. They even pretty much admit it:

That’s why they are buying shares and not the company. They have enough pressure to control things they interested in without ruining non-profile arms of Kadokawa. It’s a soft and smart way to own a company if you ask me, plus Kadokawa has way more time on their hands to re-organize unrelated arms like Famitsu.

But through Keiretsu structure they don’t even meed to do this, both parties have had their way in this deal. Especially Sony that not shilling a hefty premium for stock shares.

 

[MMaRsu]

Horrible news

 

[Kotaro]

Sony ain't got the money to buy Kadokawa whole, they wasted on useless Bungie who advised them to buy Concord and its studio

 

[Z O N E]

That’s why they are buying shares and not the company. They have enough pressure to control things they interested in without ruining non-profile arms of Kadokawa. It’s a soft and smart way to own a company if you ask me, plus Kadokawa has way more time on their hands to re-organize unrelated arms like Famitsu.

But through Keiretsu structure they don’t even meed to do this, both parties have had their way in this deal. Especially Sony that not shilling a hefty premium for stock shares.

They're not buying the company, because they were never interested in the whole of Kadokawa. There is zero reason for Sony to buy the entirety of Kadokawa.

This entire alliance is to stop hostile takeovers, since Sony and Kadokawa could not come to any buyout agreements as Sony wanted the entertainment portion, whilst Kadokawa wanted a full sale. This deal would prevent a hostile takeover, especially since the #1 Major shareholder is Korean.

This deal provides enetertainment benefits for Sony, yes, but not what they originally wanted, but it's better than a possible hostile takeover for the Kadokawa family.

https://ssl4.eir-parts.net/doc/9468/ir_material7/242676/00.pdf

 

[Z O N E]

They are basically the main shareholder and probably will buy our more shares once the hype dies down, not every takeover is done in a Western way.

They are NOT the main shareholder. They are #3 in the list of 11 of major shareholders. They were #10 before this alliance.

Korea is still #1 on the major shareholders list and The Master Trust Bank of Japan is #2.

https://ssl4.eir-parts.net/doc/9468/ir_material7/242676/00.pdf

 

[Zghia]

What a boring outcome, tbh

 

[I'm nobody]

KADOKAWA and Sony Agree to Form Strategic Capital and Business Alliance​

Further strengthening collaboration to maximize both companies' IP value globally

Tokyo, Japan - KADOKAWA CORPORATION ("KADOKAWA") and Sony Group Corporation ("Sony") today signed a strategic capital and business alliance agreement, agreeing to conduct a third-party allotment by KADOKAWA to Sony on January 7, 2025, with Sony acquiring 12,054,100 new KADOKAWA shares for approximately 50 billion yen. With the acquisition of the new shares, Sony will become KADOKAWA's largest shareholder, holding approximately 10% of its shares, including the shares Sony previously acquired in February 2021.

https://www.sony.com/en/SonyInfo/News/Press/202412/24-1219E/

 

[daninthemix]

Let me guess - they'll gradually increase their stake until they own the whole thing in the future?

Like everything Sony and Sony-hype adjacent, it's always in the future. Never now.

 

[Bert Big Balls]

They are NOT the main shareholder. They are #3 in the list of 11 of major shareholders. They were #10 before this alliance.

Korea is still #1 on the major shareholders list and The Master Trust Bank of Japan is #2.

https://ssl4.eir-parts.net/doc/9468/ir_material7/242676/00.pdf

Yup. Even if they held 10% they wouldn't be classed as a majority shareholder. Normally material ownership threshold is 25% or more.

EDIT: We also need to look at voting shares, as these actually carry weight. As per the document you linked, the percentage of the number of voting rights held by ALL shareholders is 10.11%. So these guys can't do shit.

 

[Kerotan]

So, there is no full buyout. Big fail imo.

The only big fail would have been for the industry if they bought them outright straight away.

 

[TheThreadsThatBindUs]

Basically confirmed what was mentioned in a leak before.

Sony only wanted to buy the Gaming/Anime side, whilst Kadokawa only wanted a full sale.

Sony never wanted all of Kadokawa from the beginning.

Bullshit!

It's in both the press release in the OP as well as being blindingly obvious that Sony's interest in Kadokawa is MUCH more to do with Anime and Manga than games. Sony owns all the relevant anime streaming platforms in the west and Kadokawa is the single largest creator, publisher and distributor of anime and manga in print.

Sony wants to own anime. They want access to all of Kadokawas anime IP, so they can leverage then in cross-media promotion (e.g. movies, mobile and console games).

Sony wants full end-to-end control of the entire anime production and distribution chain. That would make them the Disney-Marvel of anime.

 

[jm89]

Already a thread:

News - Business - KADOKAWA and Sony Agree to Form Strategic Capital and Business Alliance (Sony will be holding approximately 10% of KADOKAWA's shares)

Tokyo, Japan - KADOKAWA CORPORATION ("KADOKAWA") and Sony Group Corporation ("Sony") today signed a strategic capital and business alliance agreement, agreeing to conduct a third-party allotment by KADOKAWA to Sony on January 7, 2025, with Sony acquiring 12,054,100 new KADOKAWA shares for...

www.neogaf.com

Threadception.

 

[James Sawyer Ford]

If you read the fine print it’s a soft form of a full takeover.

What do you mean?

 

[Z O N E]

Bullshit!

It's in both the press release in the OP as well as being blindingly obvious that Sony's interest in Kadokawa is MUCH more to do with Anime and Manga than games. Sony owns all the relevant anime streaming platforms in the west and Kadokawa is the single largest creator, publisher and distributor of anime and manga in print.

Sony wants to own anime. They want access to all of Kadokawas anime IP, so they can leverage then in cross-media promotion (e.g. movies, mobile and console games).

Sony wants full end-to-end control of the entire anime production and distribution chain. That would make them the Disney-Marvel of anime.

I mean, that's literally the whole of the entertainment side, which is what I said.

Sony wanted to purchase only the entertainment side of Kadokawa, whilst Kadokawa wanted a full sale, no agreement happened, so we now have this alliance.

 

[Bert Big Balls]

What do you mean?

So there's this from the document ZONE linked above:

"III. Expected Change in Major Shareholders and Largest Major Shareholder
1. Background to the Change
The Third-Party Allotment is expected to result in Sony becoming a major shareholder, and the largest major shareholder, of the Company"

But it doesn't change the fact that the total voting rights held by all shareholders is only 10.11% collectively (at the moment).

 

[Cakeboxer]

Normally i hand out cookies, but here have a nothing burger:

 

[James Sawyer Ford]

So there's this from the document ZONE linked above:

"III. Expected Change in Major Shareholders and Largest Major Shareholder
1. Background to the Change
The Third-Party Allotment is expected to result in Sony becoming a major shareholder, and the largest major shareholder, of the Company"

But it doesn't change the fact that the total voting rights held by all shareholders is only 10.11% collectively (at the moment).

The (at the moment) bit is strange

It anticipates further investment?

Is this thing just getting slow dripped for some reason?

Does their 10% stake prioritize higher ownership of certain divisions like FromSoft?

 

[envyzeal]

I like it this way, but 10% is still a low number considering the investment being only U$318 million. Anyways, smart move from Mr Totoki to lock Kadokawa for a reasonable price and secure relations.