Investors of the Japanese media conglomerate Kadokawa reacted coolly to the deal with Sony. As noted by Kantan Games analyst Serkan Toto, the company's stock sharply fell in after-hours trading on December 19, with the price dropping by 15.95% immediately.
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It is possible that investors were hoping to hear that Sony would become the owner of Kadokawa, rather than its largest shareholder and strategic partner. In November, after information about negotiations between Kadokawa and Sony emerged, the media conglomerate's stock rose by more than 40% in just two days, which clearly reflected market sentiments.
At the same time, Toto notes, Sony's stock price has now increased by 1.54%.
It's worth recalling that under the terms of the agreement, from January 7, 2025, Sony will own 10% of Kadokawa. This is in addition to the 14.09% stake in the conglomerate's subsidiary studio FromSoftware, which has been in Sony's portfolio since August 2022.