Tencent acquires 6.86% stake for US $ 264 million in Japanese publishing house Kadokawa

0

On October 29, the holding company of Chinese multi-tech conglomerate Tencent acquired a 6.86% stake in Japanese publishing house Kadokawa for 30 billion yen and 264 million US dollars (approximately Rs. 1976 crore), Kadokawa officially announced on its website. Once the transaction is completed, Kadokawa will become Tencent’s third shareholder.

Tencent’s Chinese subsidiary, Sixjoy, a mobile game publishing company, acquires 4.86 million shares for 6,170 (around Rs. 4,062) per share, Kadokawa said in a stock exchange deal . The Japanese publishing house Kadokawa publishes only 5,000 to 6,000 books a year, ranging from novels to comics, well known for its animated masterpiece “Kimi no Na wa” also known as “Your name” in English, the company also operates a video sharing website named “Niconico” or “Nikoniko”.

Niconico was ranked 34th most visited website in Japan, according to Alexa Internet. The company said it has entered into a “strategic alliance” agreement with Tencent Group to promote companies, based on intellectual property Global media mix, and form a capital alliance with Tencent Group. The company also said the capital would be used to create games and animated series. Judging by reports from various overseas media outlets, Kadokawa will invest 100% of the proceeds in business by March 2024, including securing editors and producers.

“Kadokawa and Tencent Groups have maintained a strategic partnership in the publishing industry through a joint venture in Guangzhou, China since 2016. In addition, the company, Sixjoy and Tencent Japan have entered into this business alliance agreement on October 29, 2021, with the intention of forming an expanded strategic alliance in the animation and gaming industry, ”reads Kadokawa’s official agreement document.

In addition, in March of this year, Tencent invested 65.7 billion yen in the China-based e-commerce company Rakuten; this decision indicates Tencent’s course of action and explains Tencent’s efforts to develop its business and investment album in Japan.

Tencent’s share price has fallen about 15% this year following strict regulations imposed by the Chinese government on investment policy. Tencent’s acquisition of 6.86% stake in Kadokawa has so far been seen as a big bonus, so much the better for Tencent.


Source link

Share.

Comments are closed.