Sony Group Corp. (NYSE:SONY) is reportedly in discussions to acquire Kadokawa Corporation, the Japanese media powerhouse known for its extensive portfolio of anime, manga, and video games, including the global hit Elden Ring.
Two sources familiar with the matter told Reuters that negotiations are ongoing, with a potential deal expected in the coming weeks.
Kadokawa's shares surged by 23% on the Tokyo Stock Exchange following news of the talks, while Sony's stock closed up by 0.6%. Kadokawa's market capitalization stood at approximately $2.7 billion before the news broke, Reuters reports.
A Strategic Move For Sony
Sony's interest in Kadokawa aligns with its strategy to invest in intellectual properties (IP) with enduring value. Last year, CEO Kenichiro Yoshida said: "Loveable characters and intellectual property can live for 30, 50 or 100 years. That's something we want to make investment in for sustainable growth."
Sony already holds a 2% stake in Kadokawa and a stake in FromSoftware, the studio behind Elden Ring. The critically acclaimed game, developed in collaboration with Game of Thrones author George R.R. Martin, has sold 25 million units globally. Its recent expansion, Shadow of the Erdtree, moved 5 million units within three days of release.
Kadokawa, established in 1945 as a publisher, has evolved into a multimedia giant with assets spanning games, anime, events, and merchandising. Franchises like Re and Delicious in Dungeon have cemented its reputation as a leader in Japan's pop culture landscape.
- 'You Don't Know The Result Until You Actually Try It': Sony CEO On Concord's 11-Day Shutdown
Image courtesy: FromSoftware.
