Two large companies, Tencent Sony stake in Elden Ring developer, has become 30 percent. From Software has had a great number of hits over the last decade, the company pioneered a new genre of video games with the Dark Souls franchise and continued to release hits such as Bloodborne and Elden Ring. A Japanese media conglomerate, Kadokawa, backs up From Software, but recently it was revealed that new investors were being brought in, these include Sony and Tencent.
— Reuters (@Reuters) August 31, 2022
Sony and Tencent, combined, own a total of 30.34 percent stake in the company. The larger of these two stakes is Tencent, which has a 16.25 percent stake, meanwhile, Sony Interactive Entertainment has a 14.09 percent stake. Kadokawa Corporation is still the majority shareholder of From Software, as evidenced by the fact they have 69.66 percent of shares in the company.
The transaction, on Tencent’s end, seems to be part of a larger plan by the company to expand out of China and further into the overseas market. Tencent already seemingly owns a large portion of Ubisoft, and both Sony and Tencent have stakes in the Japanese media conglomerate Kadokawa, which owns the majority share in From Software.
As for how much money both companies have invested in the studio, combined, Sony and Tencent have poured a total of 36.4 billion yen into From Software. Converting this to USD roughly means the deal costs around 250 million dollars. This deal makes From Software’s overall value just slightly under 1 billion dollars, and a deal such as this will also help the company expand and grow.
As for what the deal could mean to the company, it could help the company branch out to other forms of projects. The Souls franchise has been From Software’s main seller for a while, so this deal could help them work on other games or even other forms of media. The deal itself will be beneficial to the company, and this investment will help From Software develop new games, whether it be a Souls game, Armored Core, or even a brand new IP.