Publishing house Kadokawa announced that Chinese internet conglomerate Tencent Holdings will acquire a 6.86 percent stake in Kadokawa for 30 billion yen (about $ 264 million) and become the company's third-largest shareholder. Sixjoy , a Hong Kong-based subsidiary of Tencent , will buy 4.86 million shares for 6,170 yen (about $ 54) per share, a 2.3 percent premium over its closing price. The transaction is expected to take place between November 15 and November 26.
Kadokawa stated that it will reach an agreement with Tencent Group for the anime business " in order to further promote the Global Media Mix based on the company's intellectual property " and " form an equity alliance with Tencent Group ." The company will invest all revenue in content by March 2024. This includes hiring editors and producers. The Master Trust Bank of Japan and the investment fund KSD-NH , based in Cacao, remain the first and second largest shareholders of Kadokawa after the transaction, and the former director and representative president, Nobuo Kawakami, will become the fourth largest shareholder of the company.
Earlier this year, Kadokawa formed an equity alliance with CyberAgent, Inc. and Sony to strengthen its video game and animation businesses. The company's goals are to reinforce the Global Media Mix strategy to expand Kadokawa's intellectual properties around the world, and to cooperate with CyberAgent and Sony for " the mutual exploitation of each other's business, experience and other strengths ." Kadokawa will issue 1,422,475 shares each to CyberAgent and Sony, giving each company 1.93% ownership.
Sources: Nikkei Asia, Animation Business Journal (Tadashi Sudo)
