Tencent Acquired 6.86% Stake in Kadokawa

Tencent Acquired 6.86% Stake in Kadokawa

Chinese corporation Tencent acquired 6.86% stake in Kadokawa, the mega Japanese publisher and parent company of various Japanese companies – including FromSoftware.

The news that Tencent acquired 6.86% stake in Kadokawa comes from a new investor presentation (via Serkan Toto), where the company has announced the new funds will be used for making games and other media.

Here’s a rundown on the news:

  • We will form a capital and business alliance with the Tencent Group, jointly invest in KADOKAWA animation titles and jointly work on game adaptations of those titles.
  • The alliance will strengthen investment in content and accelerate the global media mix

Tencent <—> Kadokawa

  • Strengthen joint efforts in the animation and game segments
  • Strengthen and accelerate implementation of the global strategy for KADOKAWA IP, including in China
  • Utilize the platforms owned by the Tencent Group

While Tencent has been on somewhat of an acquisition and investment spree with outside developers and publishers, this investment into Kadokawa is their largest investment in a Japanese company, as noted by industry analyst Serkan Toto.

Chinese government regulations and statements like referring to video games as “spiritual opium” have only hindered games sales in the country, some even affecting Tencent’s own worth as a company.

We’ll keep you guys posted.

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