Chinese tech and entertainment conglomerate Tencent Holdings has increased its holding in Kadokawa by 1.11 per cent, bringing its total holding to 7.97%. The move was announced by Tencent’s subsidiary, SixJoy Hong Kong Limited. This comes after Sony increased its own holding in Kadokawa amid rumors of a potential acquisition. Sony later increased its holding to 10%, becoming Kadokawa’s largest shareholder.
The deal was conducted by Tencent’s SixJoy Hong Kong Limited. Kadokawa CEO Takeshi Natsuno expressed satisfaction with the agreement, stating that it would strengthen its IP creation capabilities and increase its IP media mix options. The alliance is expected to contribute to the maximisation of IP value and corporate value in the mid- to long-term.
In this article, we will delve into the latest development of KADOKAWA Corporation selling even more of its shares to the Chinese conglomerate Tencent, solidifying their ongoing partnership.
Table of Contents
What is KADOKAWA?
Kadokawa Corporation, a Japanese media company founded in 1945, is known for its publishing, anime production, gaming, and digital content. It owns popular brands like Kadokawa Shoten, ASCII Media Works, and Enterbrain, as well as FromSoftware, the legendary game development studio behind iconic games like Dark Souls, Bloodborne, Sekiro: Shadows Die Twice, and Elden Ring. In 2019, Kadokawa Dwango was reorganized to become the sole subsidiary of Kadokawa Corporation, with Kadokawa Future Publishing remaining in Kadokawa Corporation.
In 2021, Kadokawa formed a Capital Alliance with Sony and CyberAgent to strengthen the company’s creation, development, and acquisition of new IP while maximizing use of existing IPs. Kakao Japan acquired an 8.3% stake in Kadokawa by August 2021, making them the largest shareholder at the time. In October 2021, Kadokawa formed a capital and business alliance with Tencent, which acquired a 6.86% stake in the conglomerate for ¥30 billion ($264 million).
In January 2024, Kadokawa entered a partnership with Belgian publishing company Dupuis to acquire a 51% stake in Vega Dupuis’s manga imprint. In July 2024, the company announced the acquisition of anime studio Doga Kobo.
In November 2024, Sony Group Corporation was in talks to acquire Kadokawa, but Kadokawa insisted that acquisition offers encompassed the entire company. On December 19, 2024, Sony announced a strategic capital and business alliance with Kadokawa, acquiring 12 million new shares for ¥50 billion ($320 million) on January 7, 2025.
In February 2025, Kadokawa announced the merger of Dwango, BookWalker, and Kadokawa Connected into one company, with Dwango being the surviving company.
The Recent Deal with Tencent
Tencent Holdings has increased its stake in KADOKAWA by 1.11%, bringing its total ownership to 7.97%. This move is part of a broader capital and business alliance between the two companies aimed at enhancing their collaborative efforts in the entertainment and gaming sectors. Tencent’s strategy is clear: strengthen its position in the gaming and entertainment markets. The company already holds significant stakes in several game developers, including a 40% share in Epic Games and a 99% ownership of Riot Games. By deepening its ties with KADOKAWA, Tencent aims to gain more control over FromSoftware, whose games have achieved tremendous success worldwide.
Sony Group Corporation remains KADOKAWA’s largest shareholder, with a 10% stake acquired after a ¥50 billion investment in December 2024. Both Sony and Tencent previously invested directly in FromSoftware in 2022, collectively acquiring 30.34% of the studio’s shares, with Sony holding 14.09%. Despite these investments, KADOKAWA retains the majority ownership of FromSoftware, holding 69.66% of the studio.
The partnership between KADOKAWA and Tencent is likely to grow further, as both companies aim to leverage each other’s strengths. Tencent’s financial backing and digital expertise combined with KADOKAWA’s creative resources could bring exciting developments to the entertainment world. The question remains: how will this partnership shape the future of KADOKAWA’s ventures, especially in anime and gaming?
FAQs
Some frequently aksed question about KADOKAWA Sells More Shares to Chinese Giant Tencent arre given below.
Q1: Why did KADOKAWA sell more shares to Tencent?
A: KADOKAWA sold more shares to Tencent as part of a capital and business alliance aimed at enhancing their collaborative efforts in the entertainment and gaming industries.
Q2: How much of KADOKAWA does Tencent currently own?
A: Tencent currently owns 7.97% of KADOKAWA’s shares.
Q3: How does Sony fit into this partnership?
A: Sony is KADOKAWA’s largest shareholder with a 10% stake, which it acquired after a ¥50 billion investment in December 2024.
Q4: Why is Tencent interested in KADOKAWA?
A: Tencent aims to strengthen its position in the gaming and entertainment industries, especially by gaining more influence over FromSoftware, a popular game development studio owned by KADOKAWA.
Q5: Does KADOKAWA still control FromSoftware?
A: Yes, KADOKAWA remains the majority shareholder of FromSoftware, holding 69.66% of the studio’s shares.
Q6: What are Tencent’s other gaming-related investments?
A: Tencent has significant stakes in various game developers, including a 40% share in Epic Games and 99% ownership of Riot Games.
Final Thoughts
Chinese tech and entertainment conglomerate Tencent Holdings has increased its holding in Kadokawa by 1.11%, bringing its total ownership to 7.97%. This comes after Sony increased its own holding in Kadokawa amid rumors of a potential acquisition. Sony later increased its holding to 10%, becoming Kadokawa’s largest shareholder. The deal was conducted by Tencent’s subsidiary, SixJoy Hong Kong Limited. Kadokawa CEO Takeshi Natsuno expressed satisfaction with the agreement, stating that it would strengthen its IP creation capabilities and increase its IP media mix options. The alliance is expected to contribute to the maximisation of IP value and corporate value in the mid- to long-term.
Kadokawa Corporation, a Japanese media company founded in 1945, is known for its publishing, anime production, gaming, and digital content. It owns popular brands like Kadokawa Shoten, ASCII Media Works, and Enterbrain, as well as FromSoftware, the legendary game development studio behind iconic games like Dark Souls, Bloodborne, Sekiro: Shadows Die Twice, and Elden Ring. In 2021, Kadokawa formed a Capital Alliance with Sony and CyberAgent to strengthen the company’s creation, development, and acquisition of new IP while maximizing use of existing IPs. Tencent Holdings has increased its stake in KADOKAWA by 1.11%, bringing its total ownership to 7.97%.
