Sony buys stake in ‘Gundam’ owner to grow anime business

AFP :

Sony has bought a strategic 2.5 percent stake in Japanese game franchise giant Bandai Namco, which owns “Gundam” and arcade classic “Pac-Man”, with a view to growing its anime business.
Booming global appetite for Japanese animation has become a money-spinner for Sony, which acquired online anime library Crunchyroll in 2021.
“As two of the leading Japanese entertainment companies, Bandai Namco and Sony will focus on expanding the fan community… and strengthening engagement, particularly in the anime field where rapid market growth is anticipated,” said a joint statement released Thursday.
With the 68 billion yen ($460 million) transaction, the companies plan “to create new and emotionally moving experiences for fans”, it said.
Sony’s rival Nintendo already owns a 1.8 percent stake in Bandai Namco, which also publishes the games “Elden Ring” and “Tekken”, said Atul Goyal, equity analyst at Jefferies.
“Building on joint intellectual property successes like ‘Gundam SEED FREEDOM’, and ‘Demon Slayer’, the move aims to reinforce Sony’s upstream IP strategy and Bandai Namco’s global expansion push,” Goyal wrote.
“While there is no immediate earnings impact, the move strengthens Sony’s positioning as a central hub in Japan’s anime and IP value chain.”