Tencent acquires Japanese publishing house Kadokawa


Tencent will become the third shareholder of Japanese publishing company Kadokawa after finalizing the buyout of the stake in the company which is expected to take place in mid-November.

According to a report by Nikkei Asia, Tencent will acquire a 6.86% stake in Kadokawa for 30 billion yen (264 million US dollars) through its subsidiary Sixjoy. After the acquisition, the Chinese tech conglomerate will become Kadokawa’s third-largest shareholder. Kadokawa said the transaction would allow it to enter into a commercial alliance deal with Tencent for the anime business, further promoting the company’s global media mix based on intellectual property, adding that the transaction may also allow it to form a capital alliance with Tencent as well.

Kadokawa is a company that publishes a wide variety of book titles, up to 5,000 per year, including novels and comics. The company also operates a Niconico video sharing site. In Hong Kong, Kadokawa published the monthly magazine Japan Walker @ HK until December 2020. Currently, he operates a website as well as social media to provide Hong Kong people with travel information and news about Japan.

Tencent previously invested in Japanese e-commerce and online retail company Rakuten this year, which concerned the Japanese government. Last year, the Japanese government revised its foreign investment law to lower the minimum stake for prequalification to 1%, from 10% for strategic industries.

The Nikkei Asia report states that the law provides for exemptions, such as portfolio investments that do not seek representation on the board. Kadokawa confirmed that this investment could benefit from an exemption.

Related Articles
Study: Tencent beats Alibaba to become China’s top brand
SmarTone Appoints Tencent Cloud International Vice President Norman Tam Deputy General Manager
Tencent Music has 30 days to relinquish exclusive music license rights


Comments are closed.