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Tencent and Sony increase stake in Elden Ring developer FromSoftware
The deal will raise $262.5 million in capital to support the Japanese studio.
August 31, 2022
1 Min Read
Tencent and Sony have upped their stakes in Elden Ring developer FromSoftware.
FromSoftware parent company Kadokawa Corporation facilitated the deal by way of a third-party share allotment, allowing Tencent (via its Sixjoy subsidiary) and Sony to increase their stakes in the Dark Souls and Sekiro: Shadows Die Twice developer to 16.25 percent and 14.09 percent, respectively.
Kadokawa remains the majority shareholder with a 69.66 percent stake in the Japanese studio.
The transaction will raise 36.4 billion yen ($262.5 million) in capital that will be used to strengthen FromSoftware's production and publishing capabilities with a view to increasing its global footprint.
"Through the implementation of the fund procurement, FromSoftware will aim to proactively invest in development of more powerful game IP for itself to strengthen FromSoftware’s development capabilities and will seek to establish a framework that allows the expansion of the scope of its own publishing in the significantly growing global market," reads an announcement.
"[Kadokawa] recognizes the enhancement of capabilities for the creation, development and deployment of game IP as one of its highest priorities."
Elden Ring had sold over 12 million units worldwide as of March 2022, so it's hardly surprising to see Kadokawa commit to bolstering FromSoftware's development capabilities with a view to delivering more success.
Waxing lyrical about its partners, Kadokawa indicated it wants to leverage Sony's knowledge of releasing and supporting franchises on a global scale, while also tapping into Tencent's mobile expertise and experience launching titles and technology in China.
About the Author(s)
News Editor, GameDeveloper.com
Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.
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