There have been plenty of reports going around about Sony trying to buy the Japanese publisher Kadokawa, which is one of the bigger entities in the world of anime, manga, and even video games. They are the parent company of FromSoftware, which is the team behind Elden Ring and many other titles that gamers have bought in recent years. Initially, the reports stated that they were going to try and straight-up buy the company, which would've been a game-changing event if it had gone through. Now, according to ComicBook.com, Sony has become the biggest shareholder in Kadokawa, and that will indeed change things going forward.

So, how much does Sony now own of Kadokawa? 10% of its shares. In the business sense, that's actually not too much, but since that makes it the biggest shareholder, that gives the publisher influence over the company in key ways, including being its "outlet' for certain creations and adaptations.

A press release announcing the deal reflected that, as it stated plans to create "initiatives to adapt KADOKAWA's IP into live-action films and TV dramas globally, co-produce anime works, expand global distribution of KADOKAWA's anime works through the Sony Group, further expand publishing of KADOKAWA's games, and develop human resources to promote and expand virtual production."

While many have been nervous about what a potential merger could be, both sides released statements on how beneficial things will be for them now that things have been finalized. For example, the CEO of Kadokawa noted:

"We are very pleased to conclude this capital and business alliance agreement with Sony. This alliance is expected to not only further strengthen our IP creation capabilities, but also increase our IP media mix options with Sony's support for global expansion, allowing us to deliver our IP to more users around the world. We are confident that this will greatly contribute to maximizing the value of our IP and increasing our corporate value in the mid-to-long-term. We intend to do our utmost to ensure that our collaborative efforts with Sony produce great results in the global market."

Sony said something to that effect as well, and that could mean that Sony is focusing on things outside of just making new video games and putting them on PS5, including the upcoming Elden Ring spinoff, and instead creating an even bigger footprint in the entertainment space as a whole.