Chinese Tencent Group to Invest $264m in Japanese Publisher Kadokawa

The Japanese company KADOKAWA announced that the Chinese Internet group Tencent Holdings will acquire a 6.86 percent stake in KADOKAWA with 30 billion yen (about 264 million dollers), making it the third-largest shareholder of the publisher.

Tencent Becomes Third Largest Shareholder

The Hong Kong-based subsidiary Sixjoy acquires 4.86 million shares for 6,170 yen each (approximately 46.87 euros), which corresponds to a premium of 2.3 percent to the closing price. The transaction is expected to close between November 15 and 26, 2021.

KADOKAWA stated that it will enter into an agreement with Tencent Group for the anime business “to further promote the company’s IP-based global media mix” and “to form a capital alliance with Tencent.” The company will invest all proceeds in content by March 2024. This also includes the commitment of editors and producers.

Master Trust Bank of Japan and Cacao-based investment fund KSD-NH will remain KADOKAWA’s first and second-largest shareholder after the transaction, while former deputy director and president Nobuo Kawakami will become the fourth-largest shareholder.

Earlier this year, KADOKAWA entered into a capital alliance with CyberAgent and Sony to strengthen its gaming and animation business. Here, too, the aim is to expand KADOKAWA’s brands worldwide. Both companies each hold a stake of 1.93 percent.

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