After weeks of speculation, Sony is not acquiring FromSoftware parent company Kadokawa Corporation after all. The companies have, instead, agreed to form another strategic alliance that will see Sony Group become Kadokawa’s largest shareholder with 10% of its shares, including the shares Sony purchased back in 2021.

Sony and FromSoftware parent company Kadokawa release joint statements on alliance

In a press release, Sony pledged to strengthen its collaboration with Kadokawa to “maximize both companies’ IP value globally.” The Group plans to adapt Kadokawa’s IP into live-action movies and television shows. The alliance will also see Sony distribute and publish Kadokawa’s anime and video games.

“We are very pleased to conclude this capital and business alliance agreement with Sony,” Kadokawa said. “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.”

In a separate statement, Sony said that it’ll work “closely together to realize Kadokawa’s ‘Global Media Mix’ strategy, aimed at maximizing the value of its IP, and Sony’s long-term vision, ‘Creative Entertainment Vision.’”

It was recently reported that Kadokawa has been pushing Sony towards a full purchase, but the latter has preferred making incremental investments.