Sony to Become Kadokawa's Top Owner

Tokyo, Dec. 19 (Jiji Press)--Sony Group Corp. said Thursday it will become the top shareholder in major Japanese publisher Kadokawa Corp. under a capital and business tie-up deal.

On Jan. 17, Sony will acquire Kadokawa shares worth some 50 billion yen through a third-party new share allotment. As a result, the technology and entertainment giant's equity stake in the publisher will increase from the current level of around 2 pct to approximately 10 pct, it said.

In addition to enhancing the capital tie-up, Sony will send an executive to Kadokawa to beef up the two firms' business alliance.

Specifically, Sony hopes to capitalize on a number of quality intellectual properties held by the publisher, including "Re: Zero--Starting Life in Another World," originally a novel series, and "Delicious in Dungeon," a manga series.

Under the strategic tie-up deal, the two companies intend to jointly invest in global entertainment content, discover fresh creators, and promote further media mixes of their intellectual properties, Sony said.

[Copyright The Jiji Press, Ltd.]