Tencent Holdings has reportedly enhanced its investment in Kadokawa, the parent company of FromSoftware. On Monday, the Chinese technology giant acquired an additional 1.11 percent of Kadokawa’s shares, increasing its total ownership from 6.86 percent to 7.97 percent. Tencent initially invested in the Japanese company in 2021, spending JPY 30 billion (approximately Rs. 1,757 crore) for its initial stake. Recently, Kadokawa had been in discussions with Sony regarding a potential acquisition; however, the PlayStation parent company opted to increase its own stake, becoming Kadokawa’s largest shareholder by late 2024.
Tencent Boosts Stake in Kadokawa
SixJoy Hong Kong Limited, a subsidiary of Tencent, made the announcement regarding the share acquisition through a substantial shareholding report filed with the Kanto Finance Bureau on Monday, according to a report by Nikkei. The document indicated that the purchase of new shares in Kadokawa was part of an ongoing capital and business alliance between the two companies.
Following its initial investment in 2021, when Tencent acquired a 6.86 percent stake, the company became the third-largest shareholder of Kadokawa. The recent share purchase marks a significant step in its ongoing commitment to the Japanese publisher.
In December of the previous year, Sony had increased its ownership in Kadokawa from two percent to nearly ten percent, thereby solidifying its position as the largest shareholder in the parent company of FromSoftware. This move involved an investment of JPY 50 billion (around $320 million or Rs. 2,722 crore) aimed at enhancing collaboration and maximizing the global value of both companies’ intellectual properties. Currently, Kakao Investment from South Korea holds the second-largest share in Kadokawa with an 8.44 percent stake.
Kadokawa is known for its ownership of the prestigious game developer FromSoftware, renowned for creating hit titles such as the Dark Souls series, Bloodborne, Sekiro: Shadows Die Twice, and Elden Ring.
It is also important to recognize that both Sony and Tencent’s SixJoy Hong Kong Limited maintain investments in FromSoftware. Together, the two companies purchased 30.34 percent of the studio’s shares in 2022, with Sony acquiring a 14.09 percent stake. Despite these holdings, Kadokawa retains the majority ownership, controlling 69.66 percent of the game developer.
