NEW YORK/TOKYO –
Sony is in talks to acquire Kadokawa, the media powerhouse behind the Elden Ring game, two sources familiar with the matter said, as the technology giant looks to add to its entertainment portfolio.
The talks between the two sides are ongoing and, if successful, a deal could be signed in the coming weeks, the sources said.
Sony declined to comment. Kadokawa said it cannot comment.
As of Tuesday afternoon in Tokyo, Kadokawa’s shares were bid-only at the daily limit of ¥3,745 ($24).
Sony already has a 2% stake in Kadokawa and a stake in Kadokawa subsidiary FromSoftware, the developer of the hit fantasy role-playing game.
The fantasy title is a collaboration between veteran game director Hidetaka Miyazaki and „Game of Thrones“ author George R.R. Martin.
Kadokawa began as a publisher in 1945, but has expanded franchises such as „Re:Zero“ into games, anime, events and figures. Its market capitalization was around $2.7 billion prior to the talks being reported.
Known as the inventor of the Walkman, Sony has transformed from an electronics manufacturer into an entertainment and technology juggernaut spanning movies, music, games and chips.
„Lovable characters and intellectual property (IP) can live for 30, 50 or 100 years,“ Sony CEO Kenichiro Yoshida said last year.
„That’s something we want to make investment in for sustainable growth,“ he said.
Anime is a focus for Sony, with its growth worldwide fueled by the spread of streaming services and greater familiarity with Japanese culture.
Sony, which has a market valuation of around $114 billion, in January scrapped the $10 billion merger of its Indian arm with Zee Entertainment Enterprises.