Tencent to Acquire Stake in Japanese Media Firm Kadokawa

The Chinese tech giant, which operates super app WeChat, will take on a 6.86 percent stake in media conglomerate Kadokawa for $264 million in a deal that will take place between Nov. 15 and 26, Kr Asia reports.

Kadokawa owns intellectual property across categories like books, films, anime, and video games. It also runs Niconico, a streaming platform that inspired China’s online Gen-Z video hub, Bilibili.

The move, which will see Tencent become Kadokawa’s third largest shareholder, is the former’s attempt to grow its global footprint as Beijing increases its scrutiny over China’s tech and gaming sectors. According to data firm Niko Partners, Tencent closed 51 gaming-related deals as of May 10, 21 of which were with overseas firms.

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