Sony Music Entertainment Japan and GungHo Online Entertainment to form capital and business alliance

Sony Music to become largest shareholder.

Sony Music Entertainment Japan will acquire a 23.29 percent stake in Puzzle & Dragons developer GungHo Online Entertainment via an off-market bilateral transaction from major shareholder SON Financial, the company announced. The total offering price is 28,635,502,500 yen (approx. $178.7 million USD) at 2,385 yen per share.

The deal, which is expected to close on December 30, 2026, pending regulatory approvals, will make Sony Music Entertainment Japan the largest shareholder and an affiliated company of GungHo Online Entertainment. Sony Group Corporation, the parent company of Sony Music Entertainment Japan, will also qualify as an affiliated company.

Both parties have also entered into a capital and business alliance agreement, under which they plan to explore:

Joint development and operation of smartphone games, console games, and PC games distributed by GungHo Online Entertainment.
Promotion of collaboration initiatives for GungHo Online Entertainment games.
Exploration of new game projects, including the utilization of intellectual property of Sony Music Entertainment (Japan) and its subsidiaries and affiliates.

Following the deal’s closure, GungHo Online Entertainment will maintain its management independence as a publicly listed company on the Tokyo Stock Exchange Prime Market.