Kadokawa Corporation has confirmed that Sony Group Corp. (NYSE:SONY) has sent a letter of intent to acquire shares in the company, but no decision has been made yet.

In a brief update from CEO Takeshi Natsuno, Kadokawa said: "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."

This followed a Reuters report indicating ongoing acquisition talks. Kadokawa's stock price surged in response, reaching an all-time high.

Kadokawa's Gaming Portfolio

Kadokawa owns major video game studios, including FromSoftware, the creator of Elden Ring and Dark Souls. The company also owns Spike Chunsoft, the studio behind Danganronpa, and other companies like Acquire, the developer of Octopath Traveler.

Sony's interest in Kadokawa likely stems from the value of its game studios and intellectual properties. With FromSoftware's success Sony could strengthen its PlayStation lineup.

Additionally, Kadokawa owns a wealth of cross-media properties, including anime and manga, which could complement Sony's gaming and media strategy.

Sony already owns 14% of FromSoftware, making this potential deal significant.

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