Last week, we learned that Sony and Kadokawa were in talks for the company to buy the Japanese media giant, which notably owns FromSoftware. But while Kadokawa confirmed Sony's intention not long ago, today we have more details on the subject.
A defense strategy
In a Bloomberg article, Takashi Mochizuki reports that Kadokawa may consider an acquisition by Sony in an effort to guard against possible bids from foreign companies, such as South Korean company Kakao Corp.
It is also specified that Kadokawa and Sony have been engaged in discussions “for years”, but Sony has so far only been interested in “strategic investments” in anime and video game licenses, and not in a total redemption.
This acquisition would, however, allow Sony to expand its content portfolio while strengthening its activities, in particular by integrating Kadokawa IP into games, films and other derivative products. According to Robin Zhu, analyst at Bernstein, this acquisition would even be “probably the best deal Sony can do at the moment” with massive revenue potential.
Remember that when the takeover rumors were announced, Kadokawa's stock jumped 23%, for a market capitalization of around $2.7 billion before the publication of the first articles. Today, Kadokawa's market value is around $4.1 billion, which could also complicate the acquisition for Sony.
We won't know more on the subject at the moment but it goes without saying that we should hear about the case again in the coming months.
