Tencent and Sony made a significant investment by becoming significant stakeholders in FromSoftware, creators of the Dark Souls series and Elden Ring. For a combined total of 30.34%, Sony Interactive Entertainment and Tencent each acquired 14.09% and 16.25% of the company’s shares, respectively.
According to current official documentation, Kadokawa continues to hold a 69.6% majority of the shares. Sony and Tencent will get equity in FromSoftware once the transaction closes between September 7 and September 12.
The announcement notice states that the group sees improving capabilities for the invention, development, and deployment of game IP as one of the group’s greatest goals with an eye toward the continued growth of the game business.
FromSoftware’s future intentions concerning the issuance of new shares to Tencent and Sony
FromSoftware will employ this funding largely to enable the global publication of its own games. In order to improve FromSoftware’s development skills, the company would also seek to proactively invest in the development of a stronger game IP for itself. Additionally, it guaranteed that its creativity and autonomy in the design and creation of its games would not be altered.
In Japan, FromSoftware typically handles its own game publishing, although, in other markets, external publishers are in charge. The purpose of the deal, as stated by FromSoftware, is to increase the market for their games, and Tencent’s success in China may benefit FromSoftware’s business there significantly.
Given the enormous success Elden Ring saw earlier this year, Tencent’s investment in FromSoftware shouldn’t come as a huge surprise. On the other hand, Sony is actively growing its acquisition and has also bought minority holdings in a number of other companies, such as Epic Games and Savage Game Studios. The company substantially overshot its budget this year.
Since none of the parties concerned have spoken up just yet, it’s unknown what this implies for the company’s future, although Sony has previously collaborated with FromSoftware.