Sony Wants To Buy Company That Owns 'Elden Ring' And 'Dark Souls'
Kadokawa’s expertise in anime and manga aligns with Sony’s broader business strategy.
By Sukhbir Cheema — 20 Nov 2024, 02:58 PM
Sony is reportedly in discussions to acquire Kadokawa Corporation, the majority owner of renowned game developer FromSoftware
According to Reuters, this move could strengthen Sony's entertainment portfolio, adding to its existing anime, manga, and gaming investments.
Kadokawa is a diverse company that owns gaming studios such as FromSoftware, known for Elden Ring and Dark Souls, as well as Spike Chunsoft, Acquire, and Gotcha Gotcha Games.
The acquisition would complement Sony's existing holdings, including anime streamers Crunchyroll and Funimation, while bolstering its gaming and cross-media development efforts.
Sony currently owns 14% of FromSoftware, while Kadokawa holds a majority 70% stake
Acquiring Kadokawa would secure Sony's relationship with the developer and protect it from competing interests.
Tencent, which owns 16% of FromSoftware, could be a factor influencing Sony's strategic interest in Kadokawa.
Industry analysts see the move as a natural progression for Sony, following its 2022 investment in FromSoftware.
Kadokawa's expertise in anime and manga aligns with Sony's broader business strategy, supporting cross-media development between games and other entertainment properties
Speaking to IGN, Piers Harding-Rolls of Ampere Analysis said the interest to purchase comes at a challenging time for Sony’s gaming division.
Layoffs this year affected 900 employees globally, with studio closures and restructuring hitting notable developers like Insomniac, Guerrilla, and Bungie.
Sony's potential acquisition of Kadokawa could represent both a growth opportunity and a defensive strategy to maintain its foothold in the gaming industry amid tough market conditions.
While neither company has commented on the ongoing talks, a deal could be finalised within weeks, potentially shaping the future of Sony’s gaming and entertainment ambitions.
