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It was revealed on the 3rd that Tencent Holdings, an internet service provider, has acquired additional shares in KADOKAWA . The additional 1.11% brings its shareholding ratio to 7.97%. This was revealed in a large shareholding report submitted to the Kanto Regional Financial Bureau by Tencent Group company SixJoy Hong Kong Limited on the same day.

The purpose of the holding was stated to be "part of a capital and business alliance between the submitter and the issuer." Tencent underwrote a third-party allotment of new shares in KADOKAWA in 2021, and its investment ratio was 6.86%.

 

[Dr_Ifto]

Its poised to have a great summer with Elden Ring, so acquiring more shares now would net them a lot of money, and i know they do a lot more than From Soft, but its gonna be huge.

 

[Griffon]

Sony and tencent battling it out I see...

 

[Gojiira]

Good, push Sony to purchase outright

 

[mckmas8808]

So the Sony vs. Tencent war is increasing!

 

[//DEVIL//]

So the Sony vs. Tencent war is increasing!

It’s exactly that.

I don’t understand why Sony just doesn’t do it and then sell the things they don’t want.

 

[Danny Dudekisser]

The less China, the better. This ain't a good thing.

 

[Robot Carnival]

I would rather Sony take it. I don't trust Tencent way more than Sony.

 

[Mibu no ookami]

Tencent either looking at making a takeover or maybe trying to push Sony to buy them out for a premium. Big mistake if Sony doesn't nut up and buy outright.

 

[Metnut]

This is a potential bidding war that could be painful for Sony. They probably should’ve bought the whole thing last year if that’s their ultimate goal.

 

[ShaiKhulud1989]

Their stake was raised by a mere 1.11% to offset some inflation and Yen currency exchange shenanigans.

It's literal nothingburger. And people elsewhere are writing like Tencent bought 7.97% just today, lol.

 

[Mr Moose]

Can they acquire more than 10%?

 

[ANIMAL1975]

Wake up Sorny lol
How do they buy Bungie no problem, and are dragging this shit for years, roll eyes emoji.

 

[ShaiKhulud1989]

Wake up Sorny lol
How do they buy Bungie no problem, and are dragging this shit for years, roll eyes emoji.

I really think that mods need to change the title to
'Tencent increases its stake in Kadokawa by 1.11%'

Because it paints vastly different picture. Nobody is even trying to rival Sony here.

 

[Mibu no ookami]

I really think that mods need to change the title to
'Tencent increases its stake in Kadokawa by 1.11%'

Because it paints vastly different picture. Nobody is even trying to rival Sony here.

I will say that this could be something other than a nothing-burger.

Tencent COULD be positioning themselves to either increase their stake further or at least block a takeover from Sony.

You need a super majority or two thirds approval vote in order to takeover a company in Japan.

67% means Sony needs an additional 57 percent of the outstanding vote.

To prevent a takeover Tencent merely needs to gather a group of 34% of an anti Sony vote.

Kakao owns 8.4401
Tencent now owns 7.97
Bandai Namco owns 2.054
CyberAgent owns 1.909
Nintendo owns 0.82

This group together owns 21.1931 percent and all of them have reason to block a Sony purchase here. It actually might prove very difficult for Sony to obtain enough shares to become majority or sole owner of Kadokawa.

 

[Goalus]

Good news.

 

[riko]

Good news.

How? Tencent is a parasite and Kadokawa is a good chunk of the Japanese publishing industry.

So they can monetize light novels into more mobile casinos and addiction simulators?

 

[MayauMiao]

The less China, the better. This ain't a good thing.

Sony is no better.