Sony is reportedly in talks to acquire the Japanese conglomerate Kadokawa Corporation, as the gaming giant strives to expand and "to add to its entertainment portfolio." Read on to learn more about this ongoing acquisition and what this would mean.
Sony Might Acquire Elden Ring And Dragon Quest Media Powerhouse
Expanding To Other Forms Of Media
Sony, a leading tech giant, is currently engaged in preliminary acquisition discussions with the major Japanese conglomerate, Kadokawa Corporation. This move is part of Sony's strategic efforts to enhance its entertainment portfolio. Sony already holds a 2% stake in Kadokawa and a significant 14.09% stake in FromSoftware, a Kadokawa subsidiary renowned for its critically acclaimed soulslike fantasy action RPG, Elden Ring.
The potential acquisition of Kadokawa Corporation would be a game-changer for Sony. Kadokawa owns several key subsidiaries, including FromSoftware (known for Elden Ring and Armored Core), Spike Chunsoft (behind Dragon Quest and Pokémon Mystery Dungeon), and Acquire (creators of Octopath Traveler and Mario & Luigi: Brothership). Beyond gaming, the Kadokawa Group is a powerhouse in media production, involved in anime production and the publishing of books and manga.
This acquisition aligns perfectly with Sony's goal to diversify its entertainment offerings and reduce dependency on hit titles, as reported by Reuters. If negotiations succeed, a deal could be finalized by the end of 2024. However, as of now, both Sony and Kadokawa have refrained from commenting on the ongoing discussions.
Kadokawa Share Price Dramatically Increases, But Fans Are Concerned
Following the announcement, Kadokawa's share price soared to an all-time high, reaching a 23% increase to close at 4,439 JPY from 3,032 JPY before the news broke. Sony's shares also saw a rise of 2.86%.
Despite the positive market response, the public's reaction has been mixed. Many fans are expressing apprehension about Sony's recent acquisitions, citing the abrupt closure of Firewalk Studios in 2023, just a year after Sony's acquisition, following the poor reception of its multiplayer shooter game Concord. There are concerns that Sony's involvement could impact the creative output of FromSoftware and other studios under Kadokawa.
From the anime and media perspective, fans are worried about Sony potentially gaining a monopoly over anime distribution in the West. With Sony already owning Crunchyroll, a popular anime streaming platform, acquiring Kadokawa would provide access to a vast array of popular IPs such as Oshi no Ko, Re:Zero, and Delicious in Dungeon, further solidifying Sony's dominance in the anime industry.
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