China’s Tencent Holdings has said it will acquire a 6.86% stake in Japan’s Kadokawa, striking a partnership between two media giants that reflects the shifting balance of power between the two countries’ industries.
Tencent will buy 4.86 million shares for a total of 30 billion yen (USD$265 million) via its Hong Kong-based subsidiary Sixjoy. It will become Kadokawa’s third-largest shareholder. The transaction is expected to take place between November 15 and 26.
Kadokawa states that the companies will “jointly invest in Kadokawa animation titles and jointly work on game adaptations of those titles.” A big impetus for the deal is the desire to develop and spread Kadokawa’s vast library of IP, which includes anime and games but also manga, books, live-action films, and more.