Sony is set to become the principal shareholder of FromSoftware's parent company, Kadokawa Corporation

Sony is set to become the largest stakeholder in Kadokawa Corporation, the parent company of FromSoftware, by acquiring additional shares.

The entertainment giant disclosed a "strategic capital and business alliance agreement" to purchase over 12 million new shares in Kadokawa slated for January 7, 2025, which could cost approximately ¥50 billion ($318 million).

This new acquisition, when combined with the shares Sony obtained in February 2021, will culminate in a nearly 10% ownership of Kadokawa.

Currently, Sony is a notable stakeholder in FromSoftware, the creator of Elden Ring, holding a 14% stake owned by Kadokawa. Read more here.

The agreement outlines plans for collaborative initiatives. Sony and Kadokawa intend to cooperate on adapting Kadokawa's intellectual properties into live-action films and television dramas, co-develop anime projects, and amplify their publishing and distribution capacities concerning both anime and video games.

Last month, Sony indicated potential plans to purchase Kadokawa Corporation. Learn more about it here.

Beyond its association with FromSoftware, Kadokawa is also affiliated with Spike Chunsoft, Acquire—a contributor to Octopath Traveler, and Gotcha Gotcha Games, the company behind RPG Maker.

The potential acquisition involves more than gaming, as Kadokawa's portfolio includes print publishing, film and television production, web services, and real estate. Rob Fahey's analysis discusses further impacts.