It was recently revealed that Tencent had made further investment in FromSoftware’s parent company, Kadokawa. The move, which has been labelled ‘part of a capital business alliance between the submitter and the issuer’, brings Tencent’s stake in Kadokawa to 7.97%. For a point of reference, Sony’s stake is just 10%.
The additional stake represented a 1.1% increase in Tencent’s investment.
Key Strategies
Tencent is one of the biggest players in the gaming space, which is hardly a secret. The super-sized gaming titan has fingers in many pies and investments across the board, giving the company a foothold in almost every corner of the gaming world.
The latest investment into Kadokawa means very little in the grand scheme of things, and it’s a humble sum compared to some of Tencent’s more recent investments. The news was confirmed recently by Nikkei, a Japanese outlet.
For example, in 2022, Tencent’s stake in Ubisoft increased from 4.5% to 9.99%, an increase of more than 50%.
Elsewhere, Tencent owns 99% of Riot Games, 84% of Supercell, 40% of Epic Games, and around 10% of KRAFTON.
In December, Kadokawa was in the news after rumours surfaced suggesting that Sony was fielding an intention to acquire the company. This turned out to be an investment rather than a full buyout, as Sony formed a ‘strategic alliance’ with the company, securing 10% of the firm’s shares.
Where do you think Tencent’s next investment will be? Let us know in the comments or on the Insider Gaming forum.
For more Insider Gaming coverage, check out everything we know about Fallout 76 Season 20
Tencent should buy out Kadokawa and buy out Epic
Tencent should dump Riot and Ubisoft focus on buying out Epic.
Why doesn’t Tencent buy Kadokawa they have the money and it would help their overall business.