By Sagar V. Mankar 
Tencent has raised its ownership in Kadokawa Corporation, the parent company of popular game developer FromSoftware, to 7.97% after buying an additional 1.11% stake.
According to Nikkei, Tencent described this investment as “part of a capital business alliance between the submitter and the issuer.”
This move positions Tencent’s ownership close to Sony’s 10% stake in Kadokawa, which remains the largest shareholder after increasing its investment last December.
Sony solidified its position through a “strategic capital and business alliance agreement” with Kadokawa, purchasing over 12 million new shares on January 7, 2025, for approximately ¥50 billion ($318 million).
Tencent has built an impressive portfolio of gaming investments over the years. The Chinese technology giant currently owns 99% of Riot Games (creator of League of Legends), 84% of mobile game developer Supercell, 40% of Epic Games (maker of Fortnite), and approximately 10% of KRAFTON (developer of PUBG).
Notably, Tencent substantially increased its stake in Ubisoft from 4.5% to 9.99% in 2022.
This news follows December’s rumors that Sony was considering acquiring Kadokawa completely. However, rather than pursuing a full buyout, Sony opted for a strategic alliance that secured its 10% ownership position.
FromSoftware, known for critically acclaimed games like Elden Ring and the Dark Souls series, remains one of Kadokawa’s most valuable gaming assets.
Industry experts suggest these strategic investments allow companies like Tencent and Sony to benefit from successful game releases while potentially gaining influence over future business decisions without assuming complete ownership responsibilities.