Sony buys 10% of 'Elden Ring' owner for $320 mn

Japanese electronics titan Sony said Thursday it had paid more than $300 million for a 10 percent stake in the media conglomerate behind the smash-hit game 'Elden Ring'.

Kadokawa, known for producing anime and publishing books, including manga comics, said last month that Sony had approached the firm, sending the media firm's stocks soaring.

On Thursday, they issued a joint statement announcing that they had signed a "strategic capital and business alliance agreement."

The new deal will see Sony pay 50 billion yen ($320 million) for 12 million new Kadokawa shares, making it its biggest shareholder.

The transfer to Sony, which has already held a stake in Kadokawa since 2021, is due to take effect on January 7.

The move will expand Sony's games and cartoons portfolio after its 2021 purchase of Crunchyroll, a once semi-legal US-based sharing site now a streaming giant for Japanese anime.

The statement said Kadokawa and Sony "historically have collaborated on various projects, and through this capital and business alliance, intend to further strengthen our collaboration to maximize both companies' IP value globally."

Kadokawa also owns Tokyo-based FromSoftware, the creator of the dark fantasy role-playing adventure game "Elden Ring," developed with help from "Game of Thrones" author George R.R. Martin.

Sony said last month that its net profit jumped in the second quarter due to stronger sales of gaming, music, and imaging sensors.

Its PlayStation 5 Pro console hit shelves in November, but its price tag—799.99 euros ($847) in Europe—has raised eyebrows among gamers.