Tencent and Sony Interactive Entertainment collectively acquire 30.34 percent of FromSoftware

▤ Summary

Purposes of and reason for the Third-Party Allotment The Kadokawa Group advocates a “global media mix with technology” as its fundamental strategy that combines the stable creation of intellectual property (IP) consisting of a variety of portfolio content chiefly in the Publication, Video, Game, Web Service, and Education businesses as well as the rollout of this IP on a global scale through the extended use of technology, seeking to achieve sustained growth and enhance corporate value from medium- to long term perspectives. In line with this policy, the Company has decided to have FromSoftware implement fund procurement by way of a Third-Party Allotment to Sixjoy and SIE, the scheduled allottees, for the reasons outlined below. Tencent and its subsidiaries and affiliates (hereinafter, the “Tencent Group”) are a global Internet group that provides communication, social, gaming, digital content, advertising, fintech and cloud services, and operates the leading communication and social platform in the Internet industry in China. In addition to these purposes, for an increase of the number of users in the global market for game IP that FromSoftware creates and develops, FromSoftware decided to conduct the Third-Party Allotment to Sixjoy within the Tencent Group, which has strength in its capabilities to develop and deploy mobile games and other network technologies in the global market including China, and SIE within the Sony Group, which has strength in its capabilities to deploy IP in games, videos and various other media in the global market, concurrently and separately. By confirming its basic stance for the elimination of antisocial forces and establishment of relevant systems therefor, which were referred to as matters concerning the internal control systems in the Corporate Governance Report that Sony submitted to the Tokyo Stock Exchange, Inc. on July 5, 2022 the Company determined that Sony and its officers had no connection whatsoever with antisocial forces.

▦ Linked Companies

Tencent

$1B+

FromSoftware, Inc.

$25M to $50M