Sony Group is reportedly in advanced discussions to acquire Kadokawa Corporation, the Japanese media giant behind iconic anime, live-action projects, and the acclaimed game developer FromSoftware. Sources familiar with the matter revealed that negotiations are ongoing, and if successful, a deal could be finalized in the coming weeks.
Kadokawa’s shares surged by 23 percent, hitting their daily limit, bringing the company’s market capitalization to approximately $2.7 billion. Meanwhile, Sony’s shares rose by 0.6 percent following the news.
Kadokawa Corporation, which holds a 70 percent stake in FromSoftware, is best known for its involvement in globally renowned titles such as Bloodborne, Dark Souls, and Elden Ring. Sony already owns a 14 percent stake in the studio, further strengthening its ties to FromSoftware.
Anime and Live-Action Growth:
Kadokawa recently reported significant growth in its anime and live-action video businesses during the second quarter of the fiscal year 2024, driven by the continued popularity of its productions. The company is preparing to release new seasons of fan-favorite anime, including the highly anticipated Re Zero- Starting Life in Another World Season 3. However, Kadokawa has also hinted at a slight reduction in the overall number of anime titles planned for release.
In the live-action division, the company noted a stabilization in performance, marking what it described as a “normalization of results.”
Strategic Implications:
If finalized, the acquisition would position Sony to deepen its presence in both the gaming and entertainment sectors, leveraging Kadokawaβs extensive catalog of anime, live-action content, and FromSoftwareβs influential game development capabilities.
The deal highlights the growing convergence between media and gaming as Sony continues to expand its portfolio of assets to compete in an increasingly integrated entertainment landscape.
For further updates on this story, stay tuned.
