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Kadokawa (From Software Parent Company) to form capital alliance with Tencent

orzkare

orzkare

Member
Apr 9, 2020
653
Japan
KADOKAWA CORPORATION(Headquarters: Chiyoda-ku, Tokyo,President and Member of theBoard: Takeshi Natsuno, hereinafter the "Company") announcesthatin its meeting on October 29, 2021 its Board of Directors resolved toenter into a strategicalliance (hereinafter the "StrategicAlliance") with TencentGroup, through SixjoyHong Kong Limited (Headquarters: Hong Kong, hereinafter "Sixjoy") and Tencent Japan Co., Ltd. (Headquarters:Tokyo; hereinafter "Tencent Japan"), which are indirectly wholly-owned subsidiaries of Tencent Holdings Limited (Headquarters: Shenzhen), a core company of TencentGroup.
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The Company will issue new shares (4,862,200shares of common stock; the ratio to the total number of issued shares after the capital increase through a third-party allotment is 6.86%), and Sixjoy will subscribe to the total number of new shares. Please see "Notice Concerning Issuance of New Shares through a Third-Party Allotment"and"Notice of Cancellation of Treasury Shares"published today by the Company for details of the capital increase through a third-party allotment.
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group.kadokawa.co.jp

KADOKAWA GROUP GLOBAL PORTAL SITE

This is the KADOKAWA GROUP GLOBAL PORTAL SITE. Here you can view our company profile, philosophy, investor relations information, business overview, news releases, initiatives to achieve the SDGs and digital transformation, employment information, and more.
group.kadokawa.co.jp group.kadokawa.co.jp
 
MaxAugust

MaxAugust

Member
Jan 28, 2018
3,149
There is really no way to know what this is about, Kadokawa and Tencent are both massive. They also own Spike Chunsoft, a huge chunk of the global manga industry, plenty of real estate, advertising, film production, etc.

They also formed a "capital alliance" with Sony in February.
 
Jarod McChicken

Jarod McChicken

Member
Oct 27, 2017
2,073
Mostly boring stuff, but it's about both animation and games, plus of course China expansion.

I always forget Kadokawa owns Spike Chunsoft. As such, they have two more games for the fiscal year, Danganronpa Decadence (december) and Elden Ring (february).

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Strings

Strings

Member
Oct 27, 2017
31,419
Xils

Xils

Member
Feb 4, 2020
3,359
Does this mean whatever they do with this will have to comply with China's policy too in order to allow Tencent to expand their IPs in China?
It wouldn't change much if they only do so with some of their IPs but I wonder how much will this alliance influence Kadokawa's approach to their media going forward.
 
Max|Payne

Max|Payne

Member
Oct 27, 2017
8,974
Portugal
Xils said:
Does this mean whatever they do with this will have to comply with China's policy too in order to allow Tencent to expand their IPs in China?
It wouldn't change much if they only do so with some of their IPs but I wonder how much will this alliance influence Kadokawa's approach to their media going forward.
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Say goodbye to "effeminate men" in future Souls games.
 
Musubi

Musubi

Unshakable Resolve - Prophet of Truth
Banned
Oct 25, 2017
23,611
Tencent really has thier fingers in damn near every pie these days.
 
PoisedTurtoise

PoisedTurtoise

Banned
Oct 7, 2021
294
My only concern when I see stuff like this is, and admittedly I don't understand much, but how much influence does the CCP have over tencent, and how much influence does tencent have over these companies they got their stock in as far as forcing the political ideal side of things into their efforts?

I ended up falling off of Eastward but was happy that it was a Chinese game with a very prominent character that wasn't a strait dude given that it was a Chinese dev, so I'm hoping not much? Sorry if it is kind of a dumb question
 
Gavalanche

Gavalanche

Prophet of Regret
Member
Oct 21, 2021
17,480
I don't think people need to worry, it is a minor stake. Not much more then Sonys investment in them earlier in the year. It is most likely focused on expanding Kadokawas business into China. It won't affect From Software or anything like that.
 

Raigor

Member
May 14, 2020
15,146
PoisedTurtoise said:
My only concern when I see stuff like this is, and admittedly I don't understand much, but how much influence does the CCP have over tencent, and how much influence does tencent have over these companies they got their stock in as far as forcing the political ideal side of things into their efforts?

I ended up falling off of Eastward but was happy that it was a Chinese game with a very prominent character that wasn't a strait dude given that it was a Chinese dev, so I'm hoping not much? Sorry if it is kind of a dumb question
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It's pretty simple; Tencent does not meddle with studios, publishers or public media conglomerates where they hold a share, regrdless of minority of majority.

But, of course, if these studios want to publish their games in China they will eventually have to deal with their regulations and policies.

Siege for example is "censored" in China while the ROTW version is not and so on.
 
Joni

Joni

Member
Oct 27, 2017
19,508
Makes sense. Sony will now buy them both in one swell swoop, right? It is nothing.
 
Helix

Helix

Mayor of Clown Town
Member
Jun 8, 2019
23,793
could this mean we could see more investment in From Software to make Soulslike VN's?
 
boi

boi

Member
Nov 1, 2017
1,769
Maxey said:
What does that mean exactly for those of us who don't speak business?
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Kadokawa will issue new shares of its company. These shares represent 6.86% of the ownership of Kadokawa. These shares can exclusively be sold only to company called SixJoy, which is a wholly owned subsidiairy of Tencent. In a nutshell: Tencent now owns 6.86% of Kadokawa.

The money paid by SixJoy for these shares are used to produce new games.

In exchange for this financing and putting up the money, it is certainly possible that Tencent - as a significant shareholder, can obtain distribution rights for these newly produced games. Of course as a new shareholder, they receive 6.86% of any profit sharing from Kadokawa as well.
 
AhiKuma

AhiKuma

Banned
Sep 28, 2021
1,011
Xadra said:
So the list of owners, after adding Tencent is as follows:

OwnersKakao (7.30%)
Tencent (6.86%)
Nobuo Kawakami (6.35%)
NTT Corporation (4.58%)
Sony Group Corporation (1.93%)
CyberAgent (1.93%)[SUP][2][/SUP]
Nintendo (0.75%)
Toshiba (0.47%)
DNP (0.37%)
Oji Paper Company (0.22%)
Mitsubishi Paper Mills (0.05%)
Fuji TV (0.05%)
from wikipedia.
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While this won't impede their established partnerships it potential puts somewhat of a stop to the idea Sony acquiring Kadokawa like some people speculated or I guess hoped. Especially with Tencent involved and if they decide to get more shares.
 
TheXboxPost

TheXboxPost

Banned
Oct 1, 2021
530
There were rumors (read people wishes) about Sony acquiring Kadokawa.

"Today, Japanese mega publishing house Kadokawa said Tencent acquired a 6.86% stake for US$264 million"

There's effectively no chance Sony spends *checks notes* US$3.8 Billion to acquire Kadokawa.
 
Efejota

Efejota

Member
Mar 13, 2018
3,750
All I knew about Kadokawa is that they didn't want to release Rodea on the Wii so they made those ports that no one liked. And that Haruhi dancing game on the Wii.
 

Deleted member 93062

Account closed at user request
Banned
Mar 4, 2021
24,767
TheXboxPost said:
There were rumors (read people wishes) about Sony acquiring Kadokawa.

"Today, Japanese mega publishing house Kadokawa said Tencent acquired a 6.86% stake for US$264 million"

There's effectively no chance Sony spends *checks notes* US$3.8 Billion to acquire Kadokawa.
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Sony put aside $18.3 billion to spend in the next 3 years on strategic investments. I'm not sure if they'll buy Kadokawa, but why do people act like they're poor, lmao?

Not to mention, it'd be an investment being done by Sony, not PlayStation. Kadokawa has a lot of manga/anime that Sony has been going to the ends of earth to acquire. From/Chunspike are just nice bonuses for PS. It's really not that crazy to see this as a perfect fit whether they go through with it or not.

Lastly, it would be more like ~1.9B for them to own 51% of the shares going off of the Tencent price, probably a bit higher.
 
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DustyVonErich

DustyVonErich

Member
Oct 31, 2017
2,865
TheXboxPost said:
There were rumors (read people wishes) about Sony acquiring Kadokawa.

"Today, Japanese mega publishing house Kadokawa said Tencent acquired a 6.86% stake for US$264 million"

There's effectively no chance Sony spends *checks notes* US$3.8 Billion to acquire Kadokawa.
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How would this stop Sony when they have already shown their willingness and ability to spend billions to acquire anime?
 
Gavalanche

Gavalanche

Prophet of Regret
Member
Oct 21, 2021
17,480
TheXboxPost said:
There were rumors (read people wishes) about Sony acquiring Kadokawa.

"Today, Japanese mega publishing house Kadokawa said Tencent acquired a 6.86% stake for US$264 million"

There's effectively no chance Sony spends *checks notes* US$3.8 Billion to acquire Kadokawa.
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I don't want to start an acquisition conversation here, but I don't think many people were wishing for this. It was more speculation; Sony has such a large focus on anime, and for it to grow much further they are going to have to acquire a large company, and Kadokawa seemed a natural step for them. I don't think it discounts them purchasing kadokawa, but I also think it shows that Kadokawa don't really want to be purchased, at least right now.
 
Apathy

Apathy

Member
Oct 25, 2017
11,992
Tencent is too big. It has its hand in everything

TheXboxPost said:
There were rumors (read people wishes) about Sony acquiring Kadokawa.

"Today, Japanese mega publishing house Kadokawa said Tencent acquired a 6.86% stake for US$264 million"

There's effectively no chance Sony spends *checks notes* US$3.8 Billion to acquire Kadokawa.
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Rumors of Sony acquiring kadokawa is more in line with their push into anime. They could easily spend 3.8 billion to strengthen that. Hell, they spent 1 billion to get crunchy roll when they already owned an anime streaming service.
 
lemonade

lemonade

Member
May 8, 2018
3,044
Dyno said:
Fromsofts parent company just partnered with a company that actively helps China to spy on Muslims.
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Microsoft has been helping US actively bomb Muslims for decades.

Wonder if you also bring this energy to MS acquisition threads or does it only come out due to sinophobia?
 
SunshinePuppies

SunshinePuppies

One Winged Slayer
Member
Nov 14, 2020
3,351
lemonade said:
Microsoft has been helping US actively bomb Muslims for decades.

Wonder if you also bring this energy to MS acquisition threads or does it only come out due to sinophobia?
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OK sorry this is silly

1. You can hate multiple governments at the same time. This is literal whataboutism, a common tactic of the Right in US politics.
2. Criticizing how a megacorp or a ruling government conducts themselves does not make you x-phobic. Or do you equate those who criticize how the Israel government bombs Palestinians as anti-Semitic?
 
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