Tencent continues to act aggressively in the M&A market. This time, the company acquired a stake in the Japanese publishing house Kadokawa, which owns the FromSoftware studio. The transaction amount was ¥30 billion ($264 million).Elden Ring
In total, Tencent will acquire 6.86% of Kadokawa shares through its “daughter” Sixjoy.
It is expected that the deal will be closed in the period from November 12 to 26.
The investment will allow the Chinese giant to strengthen its position in the Japanese market. This is especially important in the context of increased pressure on the Chinese gaming industry from local authorities.
As part of the cooperation, Kadokawa and Tencent will invest in the creation of animation products and their game adaptations. The investment will also help the Japanese company gain a foothold in the international market and promote its franchises outside of its home country.
According to analyst Serkan Toto, this is Tencent’s largest gaming deal in the Japanese market. In March, the Chinese giant also invested ¥65.7 billion ($576 million) in the local e-commerce company Rakuten.
Kadokawa is a media conglomerate that produces games and films, and also publishes about 5,000 book products annually. In 2014, the company acquired 80% of the FromSoftware studio, known for Sekiro: Shadow Die Twice, the Dark Souls series and the upcoming Elden Ring.