Sony in Talks to Acquire Kadokawa, Expanding Its Entertainment Portfolio

Sony is in discussions to acquire Kadokawa, the Japanese media giant known for its involvement in video games, anime, and publishing, according to sources familiar with the matter. The potential deal could see Sony significantly expanding its entertainment assets and deepen its ties to the gaming industry.

The ongoing talks could result in an agreement in the coming weeks, the sources said. If the deal goes through, it would add to Sony’s existing relationship with Kadokawa, as the technology conglomerate already holds a 2% stake in the company. Sony also has an investment in Kadokawa’s subsidiary, FromSoftware, the developer behind the wildly successful video game Elden Ring.

The acquisition news had an immediate impact on the market, with Kadokawa’s shares rising by 23%, reaching the daily limit. Before the Reuters report, Kadokawa’s market capitalization was estimated at $2.7 billion. In comparison, Sony’s stock saw a more modest increase of 0.6% following the announcement.

Elden Ring, a collaboration between game director Hidetaka Miyazaki and Game of Thrones author George R.R. Martin, has been a massive success, with 25 million units sold worldwide. The action RPG has garnered critical acclaim for its expansive, atmospheric world and intricate gameplay. It is available across multiple platforms, including Sony’s PlayStation consoles. The game’s recent expansion, Shadow of the Erdtree, sold 5 million units within just three days of its June release.

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Kadokawa, founded in 1945 as a publishing house, has since diversified into various sectors, including video games, anime, and live events. Its portfolio includes popular franchises like Re

, a fantasy series about a teenage boy transported to another world, and Delicious in Dungeon, a manga-turned-anime following adventurers who cook and consume the monsters they encounter in dungeons.

If the acquisition proceeds, it would mark another key move in Sony’s strategy to strengthen its presence in the entertainment sector, further integrating gaming, anime, and other media under its corporate umbrella.

Per Reuters, the talks are still ongoing, and no official agreement has yet been reached.

Source: Reuters