Sony plans bid versus Blackstone, KKR for $1.3 billion manga app

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sony Music Entertainment is preparing a bid against private equity funds Blackstone Inc. and KKR & Co to acquire Japanese e-comics provider Infocom Corp. in a deal estimated to be worth around 200 billion yen ($1.3 billion).

A second round of bidding for Teijin Ltd.’s entire stake in Infocom will be held in May, according to people familiar with the matter, who asked not to be named discussing non-public information.

Sony Group Corp.’s music arm is discussing an offer with Japanese fund Integral Corp. and the suitors are considering acquiring all of Infocom’s shares to take the Mecha Comics manga app operator private, one of the people said. Industrial textiles maker Teijin holds 55.1% of Infocom, according to data compiled by Bloomberg.

Representatives for Teijin and Blackstone declined to comment, while Sony, Integral and KKR didn’t immediately respond to a request seeking comment outside of business hours.

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The e-comics market has been expanding rapidly within the smartphone ecosystem, with annual sales of digital manga now more than double those of their paper counterparts at 483 billion yen. Mecha Comics faces rivals from manga apps including those run by Japan’s biggest messaging platform Line Corp, as well as those operated by units of South Korean messaging giant Kakao Corp and Japanese telecom giant Nippon Telegraph & Telephone Corp.

Teijin, which hit a 52-week low in February, has been seeking to trim its non-core operations to focus on long-term growth.

In addition to its music operations, Sony Music Entertainment owns Aniplex, the producer of the blockbuster anime hit Demon Slayer. It also has a stake in Japanese anime distributor Crunchyroll, a joint venture with Sony Pictures Entertainment.

Blackstone has supplied funding to Candle Media, a studio led by former Disney executives, while KKR has invested in David Ellison’s Skydance Media.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow