Tencent, the Chinese powerhouse in the tech and entertainment sectors, has recently expanded its investment in Kadokawa by acquiring an additional 1.11% of the company’s stock. This acquisition boosts Tencent’s stake in the Japanese media company to 7.97%. According to a report by Nikkei, Tencent has indicated that this acquisition is part of a broader capital and business alliance with Kadokawa, executed through its SixJoy Hong Kong Limited subsidiary.
This move comes on the heels of similar actions by Sony, which has also increased its ownership stake in Kadokawa, amid swirling rumors of a potential acquisition. Instead of a complete takeover, Sony purchased enough shares to hold a significant 10% stake, making them the largest single shareholder in Kadokawa.
At the announcement of the alliance with Sony, Kadokawa’s CEO, Takeshi Natsuno, expressed enthusiasm about the partnership. “We’re thrilled to establish this capital and business alliance with Sony,” Natsuno stated. “This collaboration is poised to significantly enhance our IP creation capabilities and amplify our media mix strategies with Sony’s support for global reach. Our goal is to extend our intellectual properties to a wider audience worldwide, and we are certain that this partnership will substantially elevate the value of our IP and our corporate standing in the medium to long term. We’re committed to maximizing the impact of our joint efforts with Sony in the global arena.”
