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.