Tencent Increases Stake in Kadokawa, Strengthening Control Over Elden Ring and Dark Souls Publisher

Tencent is continuing its acquisition of shares in Kadokawa, increasing its influence on the publisher of Elden Ring and Dark Souls, although it remains a minority shareholder. According to reports today from Nikkei, Tencent Holdings has acquired additional shares of Kadokawa, boosting its stake by 1.11%, bringing its total holding to 7.97%.

This still places Tencent far from the 10% currently held by Sony, which remains the largest shareholder in the company. However, the gap between the two companies is now smaller.

Kadokawa’s Independence and Tencent’s Intentions

While it appears that Kadokawa values its independence, especially in terms of internal organization and creativity, it’s clear that Tencent is keen to increase its influence over the publisher, which owns FromSoftware and other important divisions in the Japanese publishing and entertainment sectors.

Regarding the purpose of the investment, it has been stated that this move is part of a “capital and business alliance between the submitter and the issuer,” according to Nikkei.

Back in 2021, Tencent initiated the purchase of new shares in Kadokawa through third parties, raising its stake to 6.86%, which has now grown to 7.97% with this recent acquisition.

Meanwhile, Sony has also increased its influence over Kadokawa, first securing a strategic alliance when it became the largest shareholder and later publishing some of Kadokawa’s games, including potential releases like Elden Ring 2.