Sony Group confirmed on Thursday that it will acquire additional shares in Kadokawa, the parent company of ‘Elden Ring’ developer FromSoftware, for approximately A$513.63 million (50 billion yen).

Before the latest deal, Sony held an approximately 2 per cent stake in Kadokawa, which will now increase to 10 per cent, making Sony Kadokawa’s largest shareholder.

The two companies agreed to conduct a third-party allotment by Kadokawa to Sony on January 7.

Kadokawa has a portfolio of anime, games and film, and also a publishing business that provides a platform for original works.

Kadokawa and Sony said in a statement on Thursday that they intend to “strengthen our collaboration to maximise both companies’ IP value globally and facilitate wider and deeper collaboration.”

Sony’s President Hiroki Totoki said Kadokawa “consistently creates a wide variety of IP, including publications and books, such as light novels and comics, as well as games and anime.”

 

The two companies will discuss joint initiatives, such as producing live-action films and TV dramas that use Kadokawa IP, and expanding global distribution of Kadokawa anime works through Sony channels, reported Nikkei Asia.

In a separate disclosure, Kadokawa said it will use some of the new capital to create, develop and acquire new IP.

The company said it plans to expand user-generated content platforms, where users can post work such as novels, to discover new creators. It also “envisages acquiring the content holders including publishers, anime production companies, and game companies in Japan and overseas.”

The remaining capital from the fresh investment will be used to enhance global IP distribution. Kadokawa said it plans to develop overseas bases for manufacturing and distribution, as well as to make corporate acquisitions.

Kadokawa owns dozens of companies, including Danganronpa developer Spike Chunsoft and Delicious in Dungeon publisher Enterbrain. It has a majority stake in Studio ENGI too.

FromSoftware has a history of partnering with Sony on exclusives such as ‘Bloodborne’ for the PlayStation 4 and the 2020 ‘Demon’s Souls’ remake for the PlayStation 5.