Sony is currently in talks to acquire Kadokawa, the Japanese media powerhouse behind the popular game “Elden Ring,” according to two sources familiar with the matter. This move is part of Sony’s strategy to expand its entertainment portfolio. The discussions are ongoing, and if successful, a deal could be finalized in the coming weeks. Following the news, Kadokawa’s shares surged by 23% to reach their daily limit, giving the company a market capitalization of approximately $2.7 billion. Sony declined to comment on the situation, while Kadokawa stated it is unable to comment. Sony already owns a 2% stake in Kadokawa and has investments in Kadokawa’s subsidiary,
FromSoftware, which developed “Elden Ring.” The game, a collaboration between renowned game director Hidetaka Miyazaki and “Game of Thrones” author George R.R. Martin, has sold 25 million units. Its expansion, “Shadow of the Erdtree,” achieved sales of 5 million units within just three days of its release in June. Founded as a publisher in 1945, Kadokawa has expanded its franchises, including “Re:Zero,” into various forms of media, such as games, anime, events, and merchandise.
Other notable franchises include “Delicious in Dungeon,” a manga that has been adapted into an anime about adventurers exploring dungeons and encountering monsters. Sony, known as the inventor of the Walkman, has evolved from an electronics manufacturer into a leading entertainment and technology conglomerate, involving itself in movies, music, games, and semiconductors. The tech-heavy Nasdaq ended higher due to another surge in Tesla shares.
“Lovable characters and intellectual property (IP) can endure for 30, 50, or even 100 years,” said Sony CEO Kenichiro Yoshida last year. “That’s something we want to invest in for sustainable growth.” Sony’s focus includes anime, which has seen significant global growth driven by the rise of streaming services and increasing familiarity with Japanese culture.
The company has also successfully expanded its own franchises; for example, “The Last of Us” game series has been adapted into a popular HBO drama. With a market valuation of around $114 billion, Sony recently abandoned a $10 billion merger of its Indian operations with Zee Entertainment Enterprises (ZEE.NS), citing unmet conditions for the agreement.
Kadokawa has faced challenges in recent years, including a cyberattack in June that led to a data leak and disrupted business activities. Additionally, two years ago, Tsuguhiko Kadokawa, the son of the company’s founder, resigned as chairman after being indicted on bribery charges related to the Tokyo Olympics.
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