Sony Music to become GungHo's largest shareholder for ¥28.6 billion: why the music giant wants the Puzzle & Dragons developer

Sony Music Entertainment Japan has agreed to acquire 22.9% of shares in Japanese game developer GungHo Online Entertainment, best known for Puzzle & Dragons. The package will cost about 28.6 billion yen.

After the deal closes, Sony Music will become GungHo's largest shareholder. This is not a full takeover: the game company will remain independently managed and keep its listing on the main board of the Tokyo Stock Exchange.

The main intrigue of the deal is the buyer itself. Sony Music has long been involved in far more than recording and selling music: its group includes companies operating in anime, characters, licensing, and video games. These IP and marketing capabilities are now planned to be directly connected with GungHo's game development.

Sony Music buys almost a quarter of GungHo

Under the terms of the agreement, Sony Music Entertainment Japan will buy 12,006,500 shares of GungHo from the existing shareholder SON Financial.

The price per share has been set at 2,385 yen, and the total value of the package is about 28.6 billion yen.

After the transaction, Sony Music will own about 22.9% of GungHo's outstanding shares excluding treasury shares, making it the largest shareholder.

Completion of the share transfer depends on obtaining the necessary regulatory approvals. The expected closing date is December 30, 2026.

GungHo won't receive this ¥28.6 billion

There's an important nuance for investors: Sony Music is buying existing shares from the current owner, not new shares issued by GungHo.

Therefore, the 28.6 billion yen will go to the seller, SON Financial, not to the game company itself.

The economic value of the deal for GungHo lies elsewhere: simultaneously, the parties signed a capital and business partnership agreement that provides access to IP, marketing, and other assets of Sony Music Group.

What the companies plan to do together

In their official announcement, the parties named several areas of cooperation.

• joint development and management of smartphone games;
• projects for game consoles and PC;
• joint collaborations within GungHo's existing games;
• creation of new games using Sony Music Group's intellectual property;
• combining GungHo's game development experience with Sony's marketing and entertainment capabilities.

That is, Sony Music gets not just a financial stake, but an opportunity to integrate more deeply into game development.

Why Sony Music is interested in video games at all

The name Sony Music might give the impression that the company's core business is music labels. But the Japanese division has long evolved into a broader entertainment group.

For example, Sony Music fully owns Aniplex, one of Japan's largest companies in anime and character franchises.

Aniplex not only produces anime but is also involved in games. Its subsidiary Lasengle develops and operates Fate/Grand Order, one of the most famous Japanese mobile game projects.

Aniplex's portfolio and partner ecosystem also include major anime franchises that can be expanded across multiple formats—from series and films to games, merchandise, and events.

Therefore, the investment in GungHo looks like part of a broader strategy: not just to release music or anime, but to turn popular IP into multi-platform entertainment products.

What Sony gets from GungHo

GungHo's key asset is its own expertise in creating and long-term operating games.

The company develops projects for smartphones, consoles, and PC. Its biggest hit, Puzzle & Dragons, has been running for over ten years and continues to attract a large audience.

In June 2026, GungHo announced that Puzzle & Dragons has surpassed 64 million downloads in Japan alone.

Another company project, the multiplayer Ninjala for Nintendo Switch, had passed 12 million downloads worldwide by June.

For Sony Music, such a partner is particularly interesting because it can not only create a game based on a well-known character or franchise, but also maintain it as an online service for years.

Why this is not Sony acquiring GungHo

A stake of 22.9% gives Sony Music the status of the largest shareholder and significant economic influence, but not majority control.

GungHo will independently retain management autonomy and continue to operate as a public company on the Tokyo Stock Exchange Prime Market.

This sets the deal apart from a classic takeover, where the buyer obtains more than half of the votes and fully controls the company.

For Sony, this structure allows strategic access to the developer without having to buy the entire business.

Sony increasingly invests in other gaming and media IP

The GungHo deal fits into a broader trend within Sony Group.

In 2025, Sony became the largest shareholder of Japanese media group Kadokawa after investing about 50 billion yen. At the time, the companies also announced intentions to jointly develop intellectual property in films, anime, and games.

Sony Music and Aniplex previously created a separate joint venture with developer Pocketpair to expand the business around the popular game Palworld beyond the video game itself.

The overall logic is similar: a strong gaming or media franchise is seen not as a single product, but as a foundation for anime, music, films, licensing, merchandise, and new games.

What could emerge after the deal

The parties have not yet announced a specific new game that will result from the partnership.

Therefore, it would be premature to expect, for example, a Puzzle & Dragons game with specific Sony characters or a new Aniplex franchise from GungHo.

But the official agreement explicitly provides for the use of Sony Music Group's IP in new game projects.

Ultimately, the main asset of the deal may turn out to be not the GungHo stake itself, but the ability to connect Sony's characters and franchises with a developer that knows how to turn games into long-term digital services.