Chinese tech and entertainment giant Tencent has acquired more shares in Kadokawa. 

Nikkei reports that the company snapped up 1.11 per cent more stock in the Japanese media firm, bringing it total holding up to 7.97 per cent. Tencent has said that that this is "part of a capital and business alliance between the submitter and the issuer." The deal was conducted by Tencent's SixJoy Hong Kong Limited.

This follows Sony increasing its own holding in Kadokawa amid rumours that the company was looking to acquire the media firm. In the end the PlayStation giant snapped up some shares to bring its total holding up to 10 per cent. In doing so, Sony became Kadokawa's largest shareholder. 

“We are very pleased to conclude this capital and business alliance agreement with Sony," Kadokawa CEO Takeshi Natsuno said at the time. 

"This alliance is expected to not only further strengthen our IP creation capabilities, but also increase our IP media mix options with Sony’s support for global expansion, allowing us to deliver our IP to more users around the world. We are confident that this will greatly contribute to maximising the value of our IP and increasing our corporate value in the mid- to long-term. We intend to do our utmost to ensure that our collaborative efforts with Sony produce great results in the global market.”