TOKYO — Kadokawa Shoten Publishing announced Monday that it is buying rival Tokuma Shoten Publishing’s film producer/distrib Daiei, including its 1,600-strong library, in a deal estimated to be worth 2 billion to 3 billion yen ($17.24 million to $25.86 million).
This is one more step in Tokuma’s debt reduction, and part of a major overhaul of Kadokawa’s visual content business. A Kadokawa subsidiary will take over Daiei’s operations which will be integrated into the publisher’s expanding film business.
Kadokawa’s aim is to shift film investment into films based on books it publishes and towards those for which it can secure video and DVD rights.
Daiei’s operating profit increased by 79% to $2.6 million in the year ended August 2001. In comparison, Kadokawa’s movie and visual content business lost about $6.9 million in the year ended March 31.