Japan's Sony Group will spend $320 million to acquire a stake in Japanese content giant Kadokawa.

Sony announced on Thursday that it will enter into a capital and business partnership with Kadokawa, and will invest nearly 50 billion yen ($320 million) to acquire new shares in Kadokawa.

Upon completion of the deal, Sony's stake in Kadokawa will increase to about 10%, making it its largest shareholder.

Kadokawa plans to spend 20 billion yen on developing and acquiring new IPs and 29.7 billion yen on strengthening global distribution.

Kadokawa, which owns well-known game developer FromSoftware, is also involved in publishing, imaging, and Web services, and owns well-known brands such as Kadokawa Shoten.