JAPAN/ NEW YORK, 20/11/2024 (Asia News Channels) - Sony Group is reportedly in discussions to acquire Kadokawa Corporation, the Japanese media conglomerate behind the blockbuster game "Elden Ring," according to sources familiar with the matter. The negotiations are ongoing, with a potential agreement expected in the coming weeks, the sources said.
Following reports of the talks, Kadokawa's shares surged 23%, hitting their daily trading limit. Prior to the news, the company’s market capitalization stood at approximately $2.7 billion. Both Sony and Kadokawa declined to comment on the matter.
Sony, which already holds a 2% stake in Kadokawa and an interest in its subsidiary FromSoftware—the developer behind "Elden Ring"—is reportedly looking to expand its entertainment portfolio further. The game, a collaboration between renowned director Hidetaka Miyazaki and "Game of Thrones" author George R.R. Martin, has sold 25 million copies. Its expansion, "Shadow of the Erdtree," sold 5 million units within three days of its release in June.
Kadokawa, founded in 1945 as a publishing house, has diversified its intellectual property into games, anime, events, and merchandise. Its notable franchises include "Re" and "Delicious in Dungeon," the latter being a manga adapted into an anime series.Sony, originally known for its Walkman, has evolved into a global entertainment and technology leader, with interests spanning movies, music, video games, and semiconductors. CEO Kenichiro Yoshida has highlighted the long-term value of intellectual properties, stating, “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.”
The company has been focusing on anime, a sector experiencing global growth driven by streaming platforms and increased interest in Japanese culture. Sony’s previous successes include adapting its "The Last of Us" game series into a hit HBO television drama.
Sony, with a market valuation of approximately $114 billion, has faced its own challenges, including scrapping a $10 billion merger of its Indian arm with Zee Entertainment Enterprises earlier this year.
Kadokawa has also endured difficulties, including a cyberattack in June that disrupted operations and resulted in data leaks. In 2022, former chairman Tsuguhiko Kadokawa stepped down following bribery charges linked to the Tokyo Olympics.
If completed, the acquisition would further strengthen Sony’s position in the entertainment industry, aligning with its strategy to integrate valuable intellectual properties across multiple platforms.
-- ASIA NEWS CHANNELS