Kadokawa Corporation, which owns the FromSoftware studio, confirmed on Tuesday that it had been approached by the Japanese entertainment giant.
Japanese entertainment giant Sony is considering buying its compatriot Kadokawa, a media conglomerate notably behind the successful video game “Elden Ring”. In a statement sent to the press on Tuesday, Kadokawa Corporation assured that it had received “a letter of intent” from Sony, in order to “acquire shares”, confirming information from several media. This acquisition would allow the manufacturer of the famous “Playstation” to enrich its offering in games and animation. Kadokawa, however, clarified:that no decision has been made at this time».
Kadokawa is particularly present in the publishing of manga, cinema and cartoons, as well as in video games, via the FromSoftware studio, creator of blockbusters like “Elden Ring” or “Dark Souls”. Elden Ring, an action-RPG (role-playing game) became one of the best-selling video games in 2022, the year of its release, and has sold more than 25 million copies since then, according to its Japanese publisher, Bandai Namco. A paid expansion to the game, released last June, was downloaded more than 5 million times in three days.
Intense acquisition strategy
Sony, which already has stakes in Kadokawa and FromSoftware, ended up 0.63% on Tuesday on the Tokyo Stock Exchange after the publication of information by the Reuters agency on this possible takeover. Kadokawa jumped almost 23%, reaching the limit of the allowed daily trading volume. Its market value was beyond 3.2 billion euros at the close on Tuesday. On the other hand, the Japanese game publisher Bandai Namco, which distributes Elden Rings, saw its stock briefly drop by almost 9%, ending down 3.82%.
Sony has been pursuing an intense strategy of acquisitions of video game studios for several years as part of its competition with the American Microsoft, with for example its acquisition in 2022 of the American Bungie (creator of “Halo” and “Destiny”). ) for $3.6 billion. The Japanese giant, however, experienced damage like the entire video game sector, announcing at the end of October the closure of two studios, including Firewalk, behind the shooting game “Concord” which was withdrawn due to low sales. Bungie also communicated this summer about the elimination of 220 positions, or 17% of its workforce.
