Sony Group says it has signed a capital and business alliance with major Japanese publisher Kadokawa to expand their entertainment operations. The deal will make Sony the largest shareholder in Kadokawa with a roughly 10-percent stake.

The two companies inked the agreement on Thursday. Sony has a 2 percent stake in Kadokawa and will purchase another 8 percent for about 50 billion yen or 317 million dollars on January 7.

Kadokawa started as a book publisher in 1945, but has since developed into a media conglomerate with a strong presence in anime, film and video games. It also owns the Dwango video streaming service.

Sony and Kadokawa say they plan to jointly discover new creators, and develop anime, dramas and films to further expand in international markets.

Sony Group in May said it had set aside 1.8 trillion yen, or 11.4 billion dollars, for acquisitions and other strategic investments over the next three years.