
Chinese holding company Tencent, the biggest firm in the video game industry in terms of investment and revenue, has increased its stake in Kadokawa, the Japanese parent company of our beloved Soulslike maker, FromSoftware. Purchasing an additional 1.1% of Kadokawa's total shares, it now holds a 7.97% stake.
Reported by Nikkei (thanks, GamesIndustry.biz), Tencent says that the move forms "part of a capital business alliance between the submitter and the issuer". At just under two points less than Sony's investment in Kadokawa, which the PlayStation platform holder has expressed interest in acquiring outright, Tencent is among the firm's largest shareholders. Sony holds a 10% stake in Kadokawa, and a further 14% of FromSoftware itself.
At this current rate of investment, it seems like only a matter of time before one entity or another acquires Kadokawa outright. How do you feel about these varied monied interests circling our beloved FromSoftware? Practice your parry timing in the comments section below.
[source nikkei.com, via gamesindustry.biz]
Comments 27
Sony should have just bought the whole thing and been done with it Kadokawa was afraid of a Korean company taking over now they have Tencent to worry about.
I really don’t care anymore. Fromsoft’s tech issues have been wearing thin on me, and while Nightreign is very promising I just don’t have the time or patience to fight the optimization issues over the bosses and all.
@breakneck ended up being a waste of money too, since the live service initiative is well and dead despite what they may say. The only one worth it was arrowhead and hilariously HD2 wasn’t even part of that push, it just happened to be a great game that people enjoy. That’s how it should be done.
I was amused when they announced the share increase relative to the buyout price, because had they not bought Bungie, Firewalk, Haven etc they could have bought Kadokawa several times over.
Got the feeling it's Tencent who gonna end up buying Kadokawa + From Soft.
Sony needs to make the right move and acquire the company or the developer, before Tencent does, and then let FromSoftware keep doing their thing.
Why do people always want Sony to buy these large companies outright? Did we learn nothing from Microsoft's acquisitions of Activision Blizzard and Bethesda, or even Sony's acquisition of Bungie?
Regardless, it's definitely something seeing Tencent buying further stakes in companies, especially after closing offices, laying off employees, and even having one subsidiary buy themselves out to get away from their shackles.
Moral of the story: Big companies suck.
I don't care who owns them so long as they invest money into them so they can continue to bring us more games in my favourite genre. Hopefully invest enough money to enable them to create a better game engine. Sony should have given this company more tlc when they had the chance and could have bought them for a very reasonable price but we got bungie instead and all we will get is more destiny games which is great for those that like them but I want more souls games.
Has Kadokawa issued new shares or has Tencent just bought them off the market?
I trust tencent more than sony now, at least I don't hear tencent censoring their western games 😕
Not excited about tencent, but at least they release stuff, rather than the embracer group.
Still kadokawa would have been a much wiser investment than placing all chips on bungie... 1 overinflated western studio for goodness sakes! They could have gotten Eidos and crystal dynamics and probably more parts of square enix on a bargain price.
I hope people realise that Sony are on the board for Kadokawa, as per their recent investment into the company. Sony can fight against a hostile takeover by buying shares at a reduced price or even at no price. Tencent will have to buy them at market price meaning the price per share will increase as they buy more - unless they make a deal with the board.
So, comments like "Sony should have bought the whole thing" lack nuance.
@HotGoomba Because it's fine when sony does it they're the underdog 😢 Microsoft really punching down with such 10/10 best in class classics like avowed and indiana jones!
@wiiware of course Chinese companies are very much pro-censorship - comes with the territory. Now as for "western games", I think you're right - they don't care as long as it makes bank. Now, games that are also sold in China is perhaps a different story.
@Oz_Who_Dat_Dare Yup, they can't make skeleton enemy in chinese version for example, or excessive blood, but tencent is pretty chill for their western games. Kind of sad but now I prefer chinese censor compared to usa (california) censor, I mean just looks at marvel rivals, what happen if it's made in usa, all the characters design will be butchered, all of the characters will be concord-like lol.
@Oz_Who_Dat_Dare That's true but I've yet to see censorship in their games.
@wiiware and then what would you yank your pizzle over?
@DuncanDisorderly Is that some kind of slang? I'm not from english so I don't understand. I mean if you like concord-like characters you should support concord while the game still alive back then, concord failed because people that like it only saying it on twitter/x and not buying the game.
@ProfessorNiggle This here. It is nice too see at least one user actually inform about this.
Also, I always find it funny how some users here give advice on what to do to these corporations as if they knew better. If they knew better, they wouldn't be in here (typing) in the first place.
"...Hey! I'm a random user on random website telling you what these big corporations should do.... why? because, of course, I know better... If it was me, I would be running this companies better by doing X and Y").... this same user will probably bankrupt a company (big or small) in less than a year.
@wiiware I hope you like love services and F2P and freemium.
tencent more like no sence 🤣
@rpg2000 thanks and lmao exactly! I can't blame people for not understanding too much about business and finance but maybe they should do some research before posting those comments about how this company should have done this or that.
@Flaming_Kaiser I like genshin impact, can't wait for path of exile 2 and I want to try zzz (my ps5 hdd already full so I have to finish a couple of games first)
I still prefer normal single player games though.
@wiiware Cant wait to skip all of them
@Flaming_Kaiser Fair enough, everybody has different taste in gaming 😃
@wiiware Old man like me glamours for the old days where games were not a job.
Especially with liveservice they really screwed over the young generation by brainwashing them that the worst mobile practices are normal in games.
@Flaming_Kaiser We don't have to play the game as a job though, I don't like collecting the daily reward or whatever that is in genshin impact, the moment the game feels like a slog, I leave it for another games. Yes the brainwashing isn't good but most new AAA games from western publishers already cost $70 but still have mtx (looking at you diablo 4) 😕
My backlog is so large that I don't have time for free to play games right now though, I'm mostly playing indie games on my pc and ps portal.
@wiiware I know i skipped Diablo.
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