Sony reportedly in talks to acquire Kadokawa, media giant behind 'Elden Ring' and major anime's

Sony Group (6758.T) is reportedly in discussions to acquire Kadokawa Corporation (9468.T), the Japanese media powerhouse known for its role in the success of Elden Ring, according to sources cited by Reuters on November 19, 2024. The potential deal aligns with Sony’s strategy to bolster its entertainment portfolio, which spans games, anime, and movies.

The talks are ongoing, and if successful, a deal could be finalized within weeks. Kadokawa’s shares surged by 23%, hitting their daily limit, following the news. Prior to the report, Kadokawa’s market valuation was approximately $2.7 billion. Sony’s stock also rose by 0.6%.

Sony already holds a 2% stake in Kadokawa and an interest in FromSoftware, the developer behind Elden Ring. The game, a collaboration between director Hidetaka Miyazaki and Game of Thrones author George R.R. Martin, has sold 25 million units worldwide. Its expansion, Shadow of the Erdtree, achieved significant success, selling 5 million units in just three days after its June release.

Kadokawa, initially a publishing house established in 1945, has expanded into games, anime, and events with franchises like ‘Re:Zero’ and Delicious in Dungeon. The company's business has faced challenges recently, including a 2023 cyberattack and the resignation of its chairman in 2022 over bribery charges related to the Tokyo Olympics.

Sony’s CEO Kenichiro Yoshida emphasized the long-term value of intellectual property last year, stating, “Loveable characters and intellectual property can live for 30, 50, or 100 years.” The acquisition would further Sony’s global push in anime and entertainment, fueled by streaming services and rising global interest in Japanese culture.

Both Sony and Kadokawa declined to comment on the potential deal.