Kadokawa has entered a strategic capital partnership with both CyberAgent and Sony in order to further enhance the promotion of their IPs at home and abroad.
Kadokawa’s range of IPs center primarily in anime and live-action cinema (through Kadokawa Pictures), manga and light novels, areas that are seeing large levels of growth thanks to the expanding international markets for these products. Domestically, the continued rise of mobile games and the exploitation of popular multimedia properties to increase the chance of success for these games is another growing area of the market. Kadokawa have previously made attempts to expand their IP recognition internationally and in these markets, and this is something the company’s planned strategic capital alliance with Sony and CyberAgent will hope to achieve.
Kadokawa to form capital alliance with CyberAgent as well as Sony to strengthen games and anime business. Eyeing joint efforts to create & grow IPs globally. Slide below from Kadokawa's earnings report. https://t.co/kXeifkao1g pic.twitter.com/5aIjxb7Vwu
— Takashi Mochizuki (@6d6f636869) February 4, 2021
The alliance was announced during Kadokawa’s most recent financial results presentation, with the move seeing 1,422,475 shares being transferred to both companies via third party allotment that gives each company 1.93% ownership of Kadokawa Corporation. In return, Kadokawa hopes to strengthen their ties with the two companies to expand the exploitation of their IPs going forward.
Through their partnership with CyberAgent, Kadokawa hopes to take advantage of the company’s operational and smartphone development strengths when it comes to the use of their IPs to give them greater visibility in a competitive market. With Sony, the global power the company holds through streaming and consumer games is being cited as a potential benefit for the company long-term. This makes sense, especially following Sony’s recent purchase of Crunchyroll, as they position anime production and distribution worldwide as a key part of their strategy alongside gaming and technology.
Through increased potential for international visibility through Sony and domestic success through CyberAgent, the company is interested in the creation, development, and acquisition of new IPs and the maximization of current IP through the partnership.
Through both Kadokawa’s publishing and gaming divisions, the move has potential to be a boon for all parties involved, with clear benefits from IP partnerships for CyberAgent and Sony. Where things will go for certain remains to be seen.