Tencent announced on Oct. 29th that it has acquired a 6.86 % stake in Japanese media publisher Kadokawa, via Tencent’s subsidiary Sixjoy, for 265 million USD at a share price of 54.26 USD. The investment is Tencent’s largest investment in Japan so far, making Tencent the third-largest shareholder of Kadokawa. The deal will take place between Nov 15th and Nov 26th.
Kadokawa is one of the most influential media conglomerates in Japan. Being the parent company of Dark Souls developer From Software, Kadokawa owns various intellectual properties ranging from light novels, comics, animation, movies, and video games, including Sword Art Online and Haruhi Suzumiya. It also owns the popular streaming site Niconico, a platform that is well-known for its subculture content.
This is not the first time Tencent partnered with Kadokawa. In 2016, Tencent acquired a 41% stake and became the second-largest shareholder of Guangzhou Tianwen Kadokawa Animation and Comics, a joint venture between Kadokawa and China South Publishing.
The new initiative will allow a powerful business alliance between Kadokawa and Tencent to further develop their global intellectual property strategy. In Tencent’s statement, the alliance will mainly focus on the animation and game sectors.