Chinese conglomerate Tencent Holdings has acquired additional shares in KADOKAWA, upping its total from 6.86% to 7.97%. Tencent’s subsidiary, Sixjoy, revealed this when it submitted a shareholding report to the Kanto Local Finance Bureau on March 3, reports Nikkei.
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Nikkei adds that the purpose of Tencent’s share acquisition (1.11% increase) was part of a capital and business alliance between both companies. Tencent has had a long relationship with KADOKAWA; it invested in Guangzhou Tianwen Kadokawa Animation Co., Ltd., in 2016, working with KADOKAWA to promote a media-mix strategy (creating IP spanning multiple media) in China. Guangzhou Tianwen Kadokawa Animation has since published volumes of popular series like 86 Eighty-Six, Delicious in Dungeon, Bungo Stray Dogs, and Blue Lock: Episode Nagi (Japanese publisher: Kodansha) in the region.
In October 2021, KADOKAWA first entered a capital and business alliance agreement with Sixjoy and Tencent Japan, both Tencent subsidiaries, allocating them 4,862,200 shares or 6.86% of KADOKAWA. This raised around 30 billion yen (~$264 million at the time) in capital, aimed at increasing KADOKAWA’s investments in anime, gaming, publishing, overseas expansion, and digitalization of its content, as well as increasing the number of studios in its group.
The business partnership meant that Sixjoy and Tencent Japan agreed to invest in KADOKAWA anime works (via Gamebiz). In 2022, Sixjoy and Sony acquired minority stakes in popular games developer and Kadokawa subsidiary FromSoftware.
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Anime production committees involving both KADOKAWA and Tencent (or its subsidiaries) include:
- Ishura
- I’m Quitting Heroing
- Delicious in Dungeon
- Negative Positive Angler
- Overtake!
Tencent’s share acquisition follows Sony’s own recent share increase in KADOKAWA. It acquired 12,054,100 new shares for around 50 billion yen (~$319 million), worth around 10% of the company. It was part of a capital and business alliance to increase KADOKAWA’s media mix options and deliver its IP to more users globally.
KADOKAWA Chief Anime Officer Takeshi Kikuchi previously said it aims to increase annual anime revenue by 1.5x over the next three years to around 90 billion yen ($570 million). KADOKAWA’s recent Q3 earnings report revealed it made over $130 million from titles like Oshi no Ko, Re:Zero, and more between April and December 2024.
China-based Tencent is one of the world’s largest entertainment conglomerates, with significant investments in gaming, anime, and media. It owns Riot Games (League of Legends), holds a major stake in Epic Games (Fortnite), and has investments in studios like Supercell (Clash of Clans), Activision Blizzard, and Ubisoft.
Tencent is also deeply involved in anime and film through Tencent Video, its streaming platform, and Tencent Pictures, which has produced films and live-action adaptations. Tencent Video has also distributed high-profile series like the Chinese adaptation of The Three-Body Problem.
Source: Nikkei
Featured image: ©Keiso/KADOKAWA/Ishura Production Committee, ©Ryoko Kui, KADOKAWA/Delicious in Dungeon PARTNERS, ©NEGAPOSI-ANGLER PROJECT, © 2022 Quantum / Hide Amano / KADOKAWA /”Brave, I’m Quitting” Production Committee
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