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Kadokawa Corporation Forms Capital Alliance with CyberAgent, Sony
posted on by Alex Mateo
Media company Kadokawa Corporation announced on Thursday in its third quarter financial results presentation for the three months ending on December 31 that it has formed a capital alliance with CyberAgent, Inc. and Sony to strengthen its game and animation businesses. The company's goals are to strengthen the Global Media Mix Strategy to expand Kadokawa's IPs worldwide, and to cooperate with CyberAgent and Sony for "mutual exploitation of each other's business, expertise, and other strengths." Kadokawa will issue CyberAgent and Sony 1,422,475 shares each, which will give each company 1.93% ownership.
Through the alliance, Kadokawa aims to enhance game IP development and rollout, enhance animation rollout, use platforms, and involve cooperative initiatives. The company plans to use the alliance to foster, develop, and acquire new IPs, which includes investment for development including acquisition of rights and investment in and buyout of content holders. The company also aims to maximize use of existing IPs with a global multimedia rollout centered on animation and games.
Kadokawa stated that it will bring its content strength to create a diversified portfolio of IPs to the alliance. The company added that CyberAgent will offer its development and operation strength for smartphone games, and that Sony will bring its global expansion power of animation and games to the alliance.
Kadokawa reorganized its corporate structure on October 1. The company replaced its previous six departments with 13 different groups, each of which has a "chief officer" executive bearing the title of their respective group. Kadokawa noted that the restructuring would allow the company to achieve a more flat and horizontal corporate structure.
CyberAgent established Cygames in 2011, and the company has produced games such as Rage of Bahamut and Granblue Fantasy. Cygames established an anime division in March 2015 and the anime production subsidiary Cygames Pictures in April 2016. The company has worked on anime productions inspired by its games including Rage of Bahamut Genesis, Rage of Bahamut: Virgin Soul, and Granblue Fantasy the Animation.
CyberAgent and Cygames established the CA-Cygames Anime Fund in June 2017. The fund has allowed both companies to invest in anime production committees, acquire streaming rights, and acquire game adaptation rights. Some of the anime in which the fund has invested include Hinomaru Zumō, Zombie Land Saga, and As Miss Beelzebub Likes.
The anime streaming service Crunchyroll announced on December 9 that Sony's Funimation Global Group will acquire Crunchyroll. Sony reported that the purchase price is US$1.175 billion, to be paid in cash at closing.
Sony Pictures Television and Aniplex consolidated three Sony-owned anime acquisition and distribution companies — Funimation based in the United States, Wakanim based in France, and Madman Anime Group based in Australia — into one joint venture in September 2019. Sony Pictures Television Networks acquired a majority stake in Funimation for US$143 million in 2017.
In addition to Funimation, Sony owns the subsidiary anime production companies A-1 Pictures and CloverWorks through Aniplex.
