Tencent Raises Stake in FromSoftware Parent Kadokawa to 7.97 Percent: Report

Tencent Holdings has reportedly increased its stake in FromSoftware parent company Kadokawa. The Chinese firm is said to have acquired an additional 1.11 percent shares of Kadokawa on Monday, raising its ownership in the company from 6.86 percent to 7.97 percent. Tencent had acquired a stake in the Japanese firm in 2021 for JPY 30 billion (roughly Rs. 1,757 crore). More recently, Kadokawa had been in talks with Sony over being acquired, but the PlayStation parent instead increased its stake in the company to become its largest shareholder in late 2024.

Tencent Raises Stake in Kadokawa

SixJoy Hong Kong Limited, a Tencent subsidiary, announced the share purchase in a large shareholding report submitted to the Kanto Finance Bureau on Monday, as per a Nikkei report. The company acquired new Kadokawa shares "as part of a capital and business alliance between the submitter and the issuer,” the report said (translated from Japanese).

Tencent had invested JPY 30 billion in Kadokawa in 2021, acquiring a 6.86 percent stake in the publishing firm. With its investment, Tencent became the third largest shareholder in the company.

In December, Sony raised its stake in Kadokawa from two percent to nearly 10 percent to become the largest shareholder in the FromSoftware parent company. The Japanese firm invested JPY 50 billion ($320 million or roughly Rs. 2,722 crore) to acquire new shares of Kadokawa in a bid to strengthen collaboration with the publishing company and maximize both companies' IP value globally. South Korean firm Kakao Investment is the second largest shareholder in Kadokawa, with an 8.44 percent stake.

Kadokawa is the parent company of acclaimed game developer FromSoftware, the studio behind hit titles like the Dark Souls series, Bloodborne, Sekiro: Shadows Die Twice and Elden Ring.

It's also worth noting that both Sony and Tencent's SixJoy Hong Kong Limited own shares in FromSoftware, as well. Sony Interactive Entertainment and Tencent collectively bought 30.34 percent of the studio's shares in 2022, with Sony acquiring a 14.09 percent stake. Kadokawa, however, remains the majority shareholder, owning 69.66 percent of the gamemaker.