Sony has confirmed its approach to acquiring FromSoftware’s parent company Kadokawa, just weeks after a report claimed the company was in talks to buy the media and publishing firm. The PlayStation parent said it had made an “early declaration of intent” to acquire Kadokawa. While both Japanese companies initially declined to comment on a report in November that claimed Sony had begun acquisition talks, Kadokawa later confirmed Sony’s approach.
Sony confirms interest in FromSoftware parent
The confirmation from the technology giant came in comments made in an interview with Yahoo Japan on Wednesday. Sony said (translated from Japanese), “It is true that we have made a preliminary announcement of intent, and we would appreciate it if we could refrain from commenting further.”
Kadokawa, a media conglomerate that owns Elden Ring developer FromSoftware, confirmed Sony’s interest last month after initial reports. “There are some articles on the acquisition of Kadokawa Corporation (hereinafter “the Company”) by Sony Group Inc., Kadokawa said in a release issued on Nov. 20. However, this information has not been announced by the company.” A preliminary letter of intent to acquire shares in the company has been filed, but no decision has been made at this time. If any facts should come to light in the future, we will make the announcement in a timely and appropriate manner.
If the acquisition goes through, Sony will have a valuable portfolio of IP, including video games, anime, manga, and more. Perhaps the most notable asset that Sony will own is Japanese video game developer FromSoftware. The studio has produced critically and commercially successful games such as Elden Ring, Dark Souls, Bloodborne, Sekiro: Shadows Die Twice.
Kadokawa is the majority shareholder of FromSoftware, owning 69.66 percent of the company. Sony already has a significant stake in the developer. Sony Interactive Entertainment and Tencent will collectively buy 30.34 percent of the studio’s shares in 2022, with Sony acquiring a 14.09 percent stake.
In November, Reuters reported that Sony was in talks to acquire Kadokawa with the intention of expanding its entertainment portfolio. Citing sources, the publication had claimed that an agreement could be signed in the coming weeks.
