Sony had expressed its interest in buying the Kadokawa gaming division, attracted by prestigious licenses such as Elden Ring, Dark Souls or Bloodborne. However, the negotiations were unsuccessful, mainly due to differences over the scale of the acquisition. This failure caused a sudden drop in Kadokawa’s price, disappointing investors who were hoping for a more ambitious operation.
An ambitious project that came to nothing
On November 19, Reuters revealed the existence of discussions between Sony et Kadokawa for a possible buyout. Kadokawa is a key Japanese company in the field of cross-media, with an impressive portfolio: manga (Oshi No Ko, Re:Zero), anime (Your Name) and video games (Elden Ring, Bloodborne, Dragon Ball: Sparking! Zero ). Despite a month of negotiations, no major agreement could be reached, and this acquisition project ultimately collapsed.
At the heart of the disagreements: the scope of the transaction. Sony only wanted to acquire Kadokawa’s video game division to strengthen its video game catalog. For his part, Kadokawa hoped for a complete merger. The Japanese company, also courted by Microsoft et Tencenthad clearly expressed its preference for a partnership with a Japanese company rather than an American or Chinese one.
Rather than a buyout, Kadokawa ultimately opted for a capital merger. The company will issue 10% of new shares which will be acquired directly by Sony, making the latter a preferred shareholder. With around 10% of the capital, Sony thus consolidates a strategic partnership, although far from Kadokawa’s initial ambitions.
A negative reaction from investors
This outcome dampened market expectations. On December 20, Kadokawa recorded a fall of almost 16% on the stock market. A brutal correction, especially since the action had jumped 45% after the announcement of the negotiations, fueling hopes of a public purchase offer (OPA) accompanied by a substantial premium.
On Sony’s side, the story is different: the stock rose more than 2%, with investors welcoming a lower-cost deal. It remains to be seen how this partnership will evolve in the years to come and whether it will bear the expected fruits for both companies.
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