Sony in talks to acquire Kadokawa, bringing Elden Ring maker FromSoftware under its wing

Along with lots of other game, manga, and anime IPs

Serving tech enthusiasts for over 25 years.
TechSpot means tech analysis and advice you can trust.

In brief: Sony appears to be increasing the number of gaming companies under its umbrella. Reports suggest it is acquiring Kadokawa Corporation, the Japanese media conglomerate that owns Elden Ring maker FromSoftware. Discussions are said to be ongoing, and a deal could be signed in the coming weeks.

Reports that Sony is getting ready to add to its already massive portfolio of companies come from Reuters, which cites two people familiar with the matter.

Kadokawa owns 70% of FromSoftware, while Sony already has a 14% stake in the developer of the Souls games, Sekiro, Bloodborne, Armored Core, and more. Chinese gaming giant Tencent owns around 16% of the firm.

In addition to FromSoftware, Kadokawa owns Spike Chunsoft, developer of the Danganronpa series, as well as Acquire (Octopath Traveler) and Gotcha Gotcha Games (RPG Maker and Pixel Game Maker).

Beyond games, Kadokawa, founded in 1945, has a publishing division responsible for, among other things, manga and role-playing games. It also has film and animation studios, including those focused on anime, and digital and online services. Sony, of course, already owns anime streaming services Crunchyroll and Funimation.

News of the potential takeover has sent Kadokawa's shares up 23%. The company's current market cap stands at $3.4 billion.

In early 2021, Kadokawa announced a capital alliance with Sony, which included Sony acquiring a 2% stake in the conglomerate. In return, Sony pledged to develop and promote Kadokawa properties globally.

// Related Stories

• PS5 Pro delivers 30% performance boost with minimal power increase
• Twitch streamer beats Elden Ring expansion Shadow of the Erdtree with a dance mat

As demonstrated by its acquisition of Bungie in 2022, Sony's purchase of Kadokawa is highly unlikely to result in games being made by the included studios suddenly becoming PlayStation exclusives.

Kadokawa has had a rough time over the past couple of years. A cyberattack on the company in June led to a data leak and disruptied its business activities.

In September 2022, Tsuguhiko Kadokawa, then chairman of Kadokawa, was arrested on suspicion of authorizing payments of around $480,000 to a consulting firm linked to Haruyuki Takahashi, a former executive board member of the Tokyo Olympics organizing committee. These payments were allegedly made to secure Kadokawa's selection as an official sponsor for the Games, granting the company rights to publish official programs and guidebooks.

Sony and Kadokawa declined to comment when asked by Reuters.