Blackstone Inc., the world's largest alternative asset manager, is set to acquire Infocom, Japan's largest e-manga platform, in a deal valued at $1.7 billion.

This marks Blackstone’s largest private equity transaction in Japan to date.

Blackstone will buy a majority stake in Infocom from Teijin and launch a public offering for the remaining shares at ¥6,060 each. The deal values Infocom's equity at about ¥275 billion (US$1.7 billion).

The deal will give Blackstone access to Japan's growing digital manga market, estimated to be worth $1.4 billion.

Infocom's main source of revenue is Mecha Comicsa popular website and app that offers serialized manga for a small fee per chapter.

The Mecha Comic platform is a leading destination for digital manga in Japan, boasting a vast library of titles that cater primarily to female readers in their 30s and 40s. It features both popular and original titles. However, it is its romance manga that has garnered a lot of attention.

According toBloombergBlackstone’s decision is a shrewd investment, recognizing the untapped potential of Japan’s “soft power empire.”

They highlighted the growing global influence of Japanese manga and anime and suggest that Blackstone is at the forefront of capitalizing on this cultural phenomenon.

Blackstone plans to expand Infocom's original content, focusing on genres popular with its primarily female readership, a demographic with growing disposable income.

Atsuhiko Sakamoto, head of private equity at Blackstone in Japan, sees potential in developing animation and merchandise based on popular titles.

He noted that while Infocom has a small English-language business in North America, Blackstone would prioritize creating original content in Japan before expanding overseas.

“The more original content we have, the more we can monetize that intellectual property over time,” Sakamoto said in an interview. “We can create animation or merchandising around this, which will be a potential opportunity in the medium term.“

Original content currently generates about 10% of the platform's revenue.

The acquisition comes amid a surge in global interest in Japanese content, with streaming platforms vying for the rights to popular manga stories for live-action or animated adaptations.

Additionally, digital manga sales in Japan have also grown, reaching approximately ¥483 billion (US$3.1 billion) in 2023, nearly doubling since 2019, while print manga sales have declined.

It was previously reported that Sony Music Entertainment was competing with Blackstone and KKR & Co. to acquire Infocom. The bidding process involved several rounds.

Infocom shares closed at ¥6,030 in Tokyo trading, having more than doubled since early March when reports of a potential sale emerged.

Blackstone envisions a five-year plan for Infocom, culminating in a public offering. However, Sakamoto acknowledged the possibility that other companies could be interested in acquiring the business due to its strong content portfolio.

“If we build a good content business, I think it will be very attractive to a lot of people.,” he said.

Source: Japan time