Sony is reportedly in discussions to acquire Kadokawa Corporation, the Japanese media conglomerate behind FromSoftware, developer of Elden Ring, Bloodborne, and Dark Souls. Previously, Kadokawa bought the majority of FromSoftware’s stake in 2014. According to Reuters, sources close to the matter indicate that the deal could be finalized within weeks, though neither company has confirmed the talks.
Kadokawa’s stock surged by 23% following the news, bringing renewed attention to the media giant’s wide-ranging portfolio. Sony itself already owns a 2% stake in Kadokawa and shares in FromSoftware. A collaboration between FromSoftware and Game of Thrones author George R.R. Martin, Elden Ring has sold 25 million units to this day. Its DLC, Shadow of the Erdtree, moved an additional 5 million copies and has been nominated for ‘Game of the Year’ for The Game Awards.
Kadokawa began as a publishing house in 1945, and it has since expanded from light novels into anime, games, and multimedia franchises. It’s most popular for publishing Sergeant Frog, Your Anime anime movie, and the anime adaptation of Delicious in Dungeon.
For Sony, this potential Kadokawa acquisition is about more than gaming. It could also bolster Sony’s anime and multimedia branch, Aniplex, which has been instrumental in extending the company’s reach into global entertainment. Sony CEO Kenichiro Yoshida has emphasized the enduring value of strong intellectual properties, saying, “Loveable characters and IPs can live for 30, 50, or even 100 years.”
The timing of the talks aligns with Kadokawa’s recent fiscal report, highlighting a push to ‘maximize the lifetime value’ of IPs like Elden Ring. The company has plans for 26 new games, 20 targeted for consoles, as well as a united effort to globalize its media ventures.
If the deal goes through, Sony would gain access to Kadokawa’s impressive catalog of anime and game IPs. It could cement its position as a leader in the Japanese entertainment industry. But one thing still concerns video game enthusiasts: will future FromSoft’s game become Sony exclusives?
