Tencent’s Subsidiary to Become Shareholder of Japanese Game Developer FromSoftware
Kadokawa, a Japanese publishing enterprise, announced on August 31 that FromSoftware, a game subsidiary, will issue new shares to Sixjoy Hong Kong, a subsidiary owned by Tencent, and Sony Interactive Entertainment (SIE) through third-party allotment.
According to the statement, FromSoftware will raise 36.4 billion yen ($262.38 million) by issuing new shares for IP development of the company and establish a global publishing network. After the issue, Kadokawa will hold 69.66% of FromSoftware, Sixjoy Hong Kong will hold 16.25% and SIE will hold 14.09%.
In October 2021, Tencent acquired 6.86% shares of Kadokawa for 30 billion yen ($216.21 million), becoming the third-largest shareholder. “We will form a capital and business alliance with Tencent, continue to inject capital into Kadokawa’s animation business, and increase the intensity of adapting these IPs into games,” Kadokawa wrote in the announcement at that time.
FromSoftware was established in 1994 and acquired by Kadokawa in 2014. Since its establishment, the company has been popular among players with its unique games. The latest title, the open world video game “Elden Ring”, has sold more than 16.6 million copies worldwide, which is its best achievement.
FromSoftware said that it will continue to maintain its independent operations, expand its scale with the money obtained from issuing new shares, and increase its output of high-quality games to users all over the world through its cooperation with Tencent and SIE.
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