Sony is aiming to acquire Japanese media company Kadokawa, Kadokawa confirmed today.
Kadokawa is the parent company of FromSoftware, the developer of award-winning video games Elden Ring, Dark Souls, and Armored Core. The company also produces manga and anime.
“There are some articles on the acquisition of Kadokawa Corporation by Sony Group Inc.,” Kadokawa said today. “The Company has received an initial letter of intent to acquire the Company’s shares, but no decision has been made at this time.”
Sony hopes to reach a deal in the coming weeks, according to Reuters.
Sony already owns a 2% stake in Kadokawa, and purchased a 14% stake in FromSoftware in 2022. FromSoftware games Demon's Souls and Bloodborne were released exclusively on Sony Playstation.
Kadokawa is a prominent manga publisher, and acquired animation studio Doga Kobo in July.
Sony is a major anime distributor, having bought anime streaming service Crunchyroll in 2021.
Kadokawa also owns Niconico, which ranks among the largest Japanese video-sharing websites at 89 million active members, as of June. Niconico and Kadokawa were targeted by hackers in June, leading to a temporary shutdown of the platform.
Kadokawa’s (TYO: 9468) share price stood at JP¥4160 as of 3:50 pm AEDT, down from a previous close of J¥4346. The company’s market cap is JP¥559 billion.