Sony is reportedly in advanced talks to acquire Kadokawa, the Japanese media giant behind FromSoftware, the studio responsible for hits like Elden Ring and Bloodborne. If the deal goes through, Sony would significantly increase its stake in FromSoftware, cementing its influence over both the gaming and anime worlds.
(UPDATE) In a recent statement, Kadokawa confirmed that it has “received an initial letter of intent” from Sony, indicating the company's interest in purchasing shares. However, Kadokawa clarified that no decision has been made regarding the offer.
The buzz around Sony’s potential acquisition of FromSoftware is heating up, but there’s a twist: it’s actually Kadokawa, the parent company of FromSoftware, that Sony is reportedly eyeing. According to Reuters, a deal could be just weeks away. Sony currently holds a 2% stake in Kadokawa and a 14% stake in FromSoftware. If it acquires Kadokawa, Sony would effectively gain control of 69.6% of FromSoftware, boosting its total stake to around 84%. The remaining 16% would stay with Tencent.
Kadokawa is valued at approximately $2.7 billion, and while FromSoftware is certainly a major prize in this potential deal, it’s important to recognize that Kadokawa’s true strength lies in its anime and manga empire. With a business that generates more than double the revenue from gaming, Kadokawa is a dominant force in the anime and manga industry. Sony already owns Crunchyroll and Funimation, two major anime distribution platforms, and acquiring Kadokawa would give them even more control over the anime market.
While it’s tempting to focus on the gaming side of things—especially considering Sony’s long history with FromSoftware—the anime and manga sectors are likely where the real value lies for Sony. But as always, take this with a grain of salt. Just because discussions are underway doesn’t mean a deal is imminent. Many buyout talks are held without ever leading to an agreement, so this could just be the beginning of a long negotiation process.
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