Sony has confirmed its approach to acquire FromSoftware parent Kadokawa, weeks after a report claimed the company was in talks to buy the media and publishing firm. The PlayStation parent said it had made an “initial declaration of intent” to acquire Kadokawa. While the two Japanese companies had initially refused to comment on the report in November that claimed Sony had initiated acquisition talks, Kadokawa had later confirmed Sony’s approach.
The confirmation from the technology giant came in comments made in a Yahoo Japan interview Wednesday. “It is true that we have made an initial declaration of intent, and we would appreciate it if we could refrain from commenting further,” Sony said (translated from Japanese).
Kadokawa, a media conglomerate that owns Elden Ring developer FromSoftware, confirmed Sony’s interest last month following the initial report. “There are some articles on the acquisition of KADOKAWA Corporation (hereinafter “the Company”) by Sony Group Inc. However, this information is not announced by the Company,” Kadokawa had said in release on November 20. “The Company has received an initial letter of intent to acquire the Company’s shares, but no decision has been made at this time. If there are any facts that should be announced in the future, we will make an announcement in a timely and appropriate manner.”
If the acquisition goes through, Sony stands to own a valuable portfolio of IPs, including video games, anime, manga and more. Perhaps the most notable property that Sony would come to own is Japanese video game developer FromSoftware. The studio has produced critically and commercially successful games like Elden Ring, Dark Souls, Bloodborne, Sekiro: Shadows Die Twice, among others.
Kadokawa is the majority shareholder of FromSoftware, owning 69.66 percent of the company. Sony already has a significant stake in the developer. Sony Interactive Entertainment and Tencent collectively bought 30.34 percent of the studio’s shares in 2022, with Sony acquiring a 14.09 percent stake.
In November, Reuters had reported that Sony was in talks to acquire Kadokawa with the intention to expand its entertainment portfolio. Citing sources, the publication had claimed a deal could be signed in the coming weeks.
