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Sony Increases Stake in FromSoftware's Parent Company, Kadokawa

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Sony has invested 50 billion yen ($317 million) to raise its stake in Kadokawa, FromSoftware's parent company, to 10%, becoming the largest shareholder. The two companies have formed a strategic alliance to collaborate on various initiatives, including adapting Kadokawa's intellectual property into live-action films and TV dramas, co-producing anime, expanding global distribution of Kadokawa's anime, and developing virtual production. While this investment increases Sony's influence over FromSoftware's future, it's unclear how it will affect the publishing of FromSoftware's games and their platform exclusivity.

parent company Kadokawa to 10%, becoming the largest shareholder in the business, while the two corporations have entered into a"strategic capital and business alliance" according to aAccording to the press release, Sony spent 50 billion yen to increase its stake in Kadokawa from 2% to 10%—back of the napkin math thus has the company's overall value at just under $4 billion.

It's unclear how the deal might change the publishing of FromSoft's games moving forward⁠—the studio's go-to partner has been Bandai Namco⁠—but under this framework, PlayStation exclusivity of FromSoft's future games, timed or otherwise, doesn't seem likely to me. This increased stake may position Sony for a full acquisition down the line, but hey: Tomorrow's problems for tomorrow's me.

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