Sony Purchases Stake in Elden Ring Publisher Citing ‘Strategic Partnership’

Sony has revealed plans for a significant financial commitment towards Bandai Namco Holdings, referring to it as a “strategic alliance.” This investment is estimated to be worth more than $460 million and will grant Sony a partial ownership in the company that produces the popular game, Elden Ring.

As a devoted gaming enthusiast, I’d like to share some insights about Bandai Namco – a powerhouse in the Japanese video game sector, boasting a staggering market cap of over $21 billion as of July 2025. Before they joined forces in 2005, Namco had already built a strong partnership with Sony, contributing numerous games to their first two PlayStation consoles.

In simpler terms, the long-standing bond between Sony and Bandai Namco is advancing into a new phase as Sony declared a strategic business alliance on July 24. This means that Sony will purchase approximately 16 million shares of Bandai Namco, valued at around $463.42 million. As a result, Sony will now own a minority stake (approximately 2.5%) in Bandai Namco.

Why Is Sony Buying a Stake in Bandai Namco?​​

The two businesses aim to collaborate by merging their key abilities to jointly produce content, particularly utilizing Bandai Namco’s knowledge of anime and manga. They also intend to explore other complementary benefits. This includes increasing fan interaction, investing in common entertainment technology, and expanding IP-based items and services. The alliance aims to capitalize on Sony’s extensive global distribution and production resources combined with Bandai Namco’s skills in intellectual property (IP) creation. Both parties anticipate that this collaboration will speed up growth in markets with high international appeal for anime.

Sony Got a Significant Discount on Its Bandai Namco Stake

Currently (as of July 24), around 654 million Bandai Namco shares are in circulation, with each share being traded above 4800 yen. This means that the company’s total value on the stock market is approximately 3.05 trillion yen, or about $21.4 billion USD. Sony’s purchase of a 2.5% stake for 463 million dollars represents a 12% reduction compared to the current market price—a substantial difference at this scale.

In just eight short months after Sony established a business partnership with Kadokawa Corporation, parent company of FromSoftware, Bandai Namco’s investment was unveiled. This 2025 deal, for which no specific timeline has been given, will see the Japanese entertainment conglomerate acquire minority shares in both the developer and publisher of Elden Ring. Initially, the financial implications for Sony are expected to be minor. However, this investment could support Sony’s ongoing expansion into the realm of converged multimedia entertainment, where there is growing overlap between games, anime, music, and digital services. The first collaborative projects stemming from this investment may be revealed in the time to come.

Read More

2025-07-24 17:44