Sony is said to be negotiating the buyout of Kadokawa, which owns studio FromSoftware, creator of smash hit titles Elden Ring and Dark Souls (and more), as well as PlayStation exclusive Bloodborne. Sony is seeking to diversify its entertainment offerings beyond gaming, and thus Kadokawa’s wide-ranging business operations – which include anime, manga, TV, and film – align well with Sony’s larger overall portfolio, Reuters reports.
Sony in Talks to Acquire Kadokawa, Expanding Its Entertainment Portfolio
With Sony already owning anime streaming services Crunchyroll and Funimation, this is a purchase that makes sense for the Japanese entertainment giant. Kadokawa owns more than FromSoftware, with other game developers under its umbrella including Danganronpa creator Spike Chunsoft and Octopath Traveler developer Acquire, as well as RPG Maker developer Gotcha Gotcha Games.
Sony and Kadokawa are reported to still be in negotiations over the deal, which could possibly close within a couple of weeks. When approached by Reuters, both companies declined to comment on the issue. FromSoftware is about 70% owned by Kadokawa, with a 14% stake owned by Sony as well as approximately 16% owned by Tencent. Following the Elden Ring DLC, Shadow of the Erdtree, FromSoftware hasn’t announced its next project yet.
Piers Harding-Rolls, Research Director at Ampere Analysis, explained that Sony’s interest in Kadokawa’s gaming arm became clearer in 2022 when it acquired a 14% stake in FromSoftware. He pointed out that entering a possible deal to buy Kadokawa would fit into Sony’s larger strategy of expanding its cross-media content – linking anime and games with other parts of the company’s media são. The acquisition would bolster Sony’s anime and gaming interests, as well as lock out any potential rivals who might try to acquire Kadokawa and potentially affect its key relationship with FromSoftware.
This is a much-needed pick-me-up for Sony, as its gaming division has battled with mass layoffs and studio closures this year, and the acquisition could bolster its intellectual property pipeline while offering some stability in what remains a very challenging environment.
FAQs
What is Kadokawa known for?
Kadokawa is a major Japanese publisher involved in anime, manga, films, and video games, including FromSoftware’s titles like Elden Ring and Dark Souls.
- Advertisement -How much of FromSoftware does Kadokawa own?
Kadokawa holds a 70% stake in FromSoftware, with Sony owning around 14%.
