Tencent closes gap with Sony in Kadokawa ownership race

Mar 4, 2025

Summary

Tencent raised its Kadokawa stake by 1.11%, bringing total shareholding to 7.97%

Move is framed as part of a capital business alliance between the two companies

Tencent now sits within 2 points of Sony, Kadokawa's largest shareholder at 10%

Sony acquired 12M+ new Kadokawa shares in January 2025 for approx. ¥50B ($318M)

Strategic interest centers on FromSoftware, one of gaming's most valued IP holders

Tencent increased its Kadokawa shareholding by 1.11%, reaching a total of 7.97%

The move was described by Tencent as part of a "capital business alliance" with Kadokawa

"As part of a capital business alliance between the submitter and the issuer."

— Tencent

No further strategic terms of the alliance have been publicly disclosed

Sony holds 10% of Kadokawa, established as the company's largest shareholder as of December 2024

Sony's position was secured through acquisition of 12M+ new shares on January 7, 2025

Sony paid approximately ¥50B ($318M) for its expanded stake

Tencent's new 7.97% stake leaves it just ~2 percentage points behind Sony

Kadokawa is the parent company of FromSoftware, creator of Elden Ring and Dark Souls

FromSoftware represents one of the most critically and commercially valuable studios in the industry

Both Sony and Tencent positioning around Kadokawa signals high strategic value of the asset

Competitive shareholding from two global giants raises questions about longer-term acquisition intent

Whether Tencent continues incremental share purchases to close the gap with Sony further

Any formal expansion of the Tencent-Kadokawa business alliance terms

Potential for a full acquisition bid from either party as competition for Kadokawa intensifies

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