Sony is reportedly in discussions to acquire Kadokawa, the Japanese media conglomerate which owns FromSoftware, the developer behind the critically acclaimed game Elden Ring. Sources close to the matter tell Reuters that a deal could be finalized in the coming weeks, potentially expanding Sony’s entertainment portfolio significantly.
Kadokawa, established in 1945 as a publishing house, has diversified its interests over the years to encompass video games, anime, events, and merchandise. The company boasts a rich catalog of intellectual property, including popular franchises like Re:Zero and Delicious in Dungeon. Their most recent success, Elden Ring, a collaborative effort between game director Hidetaka Miyazaki and Game of Thrones author George R.R. Martin, has sold over 25 million units globally.
Sony already holds a 2% stake in Kadokawa and has an existing relationship with FromSoftware. This acquisition would further solidify Sony’s position in the gaming industry and provide access to a wealth of intellectual property for potential adaptations and expansions.
Sony CEO Kenichiro Yoshida has emphasized the importance of investing in long-lasting intellectual property for sustainable growth. The company has demonstrated its commitment to this strategy through successful adaptations of its gaming franchises, such as The Last of Us, into popular television series.
While the talks are ongoing, neither Sony nor Kadokawa has officially commented on the matter. However, news of the potential acquisition caused Kadokawa’s shares to close up 23% at their daily limit.
———–
UPDATE: Since the publication of this article, Kadokawa has released the following statement regarding the potential acquisition:
There are some articles on the acquisition of Kadokawa Corporation (hereinafter “the Company”) by Sony Group Inc. However, this information is not announced by the Company. The Company has received an initial letter of intent to acquire the Company’s shares, but no decision has been made at this time. If there are any facts that should be announced in the future, we will make an announcement in a timely and appropriate manner.
