Sony Group Corporation (NYSE:SONY) disclosed a strategic capital and business alliance with KADOKAWA CORPORATION.

As per the deal, KADOKAWA will conduct a third-party allotment to Sony on January 7, 2025, under which Sony will acquire 12.05 million new KADOKAWA shares for approximately 50 billion yen (around $319 million).

Following this acquisition, Sony will become KADOKAWA's largest shareholder, holding around 10% of its shares, including those purchased in February 2021.

Both companies aim to strengthen their partnership through this capital and business alliance, focusing on maximizing the global value of their IP.

They plan joint initiatives, including adapting KADOKAWA's IP into live-action films and TV dramas, co-producing anime, expanding global distribution of KADOKAWA's anime, publishing games, and developing talent for virtual production.

Hiroki Totoki, President, COO and CFO, Sony Group Corporation said, "Through this capital and business alliance, we will become the largest shareholder of KADOKAWA, which consistently creates a wide variety of IP, including publications and books, such as light novels and comics, as well as games and anime."

"By combining KADOKAWA's extensive IP and IP creation ecosystem with the strengths of Sony, which has promoted the global expansion of a wide range of entertainment, including anime and games, we plan to work closely together to realize KADOKAWA's 'Global Media Mix' strategy, aimed at maximizing the value of its IP, and Sony's long-term vision, 'Creative Entertainment Vision."

Investors can gain exposure to the stock via iShares Large Cap Core Active ETF (NASDAQ:BLCR) and Calamos ETF Trust Calamos Antetokounmpo Global Sustainable Equities ETF (NYSE:SROI).

Price Action: SONY shares are up 0.29% at $20.97 premarket at the last check Thursday.

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