Update (11/20/24): Kadokawa has confirmed it has received an acquisition offer.
In a brief letter to investors, published in response to recent buyout reports, the company said it has “received an initial letter of intent to acquire the company’s shares,” but emphasized that “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,” it added.
Original story: Sony is reportedly in talks to acquire FromSoftware parent company Kadokawa Corporation. That’s according to Reuters, which spoke with two sources familiar with the matter.
It’s claimed Sony and Kadokawa have already entered discussions and that a deal could be signed in the coming weeks. Sony currently holds a small stake in Kadokawa. It also owns a 14.09 percent stake in FromSoftware. Kadokawa said the pair have built a “collaborative business relationship” around creating new franchises.
Kadokawa recently outlined plans to push into PC and console publishing. In its latest fiscal report, the company said it’s “developing a structure” to bolster its video game business and also intends to double down on mobile projects.
Elden Ring driving growth within Kadokawa
The Japanese company noted that FromSoftware’s critically acclaimed (and rather brutal) RPG, Elden Ring, continues to drive “high growth” within its gaming business.
Elden Ring has sold over 25 million copies since launching in 2022. FromSoftware expanded the title this year with the celebrated Shadow of the Erdtree expansion, which has been nominated for Game of the Year at The Game Awards 2024.
Sony, meanwhile, has spent the last year downsizing its internal studios. The company shuttered Concord developer Firewalk and mobile studio Neon Koi in October. Prior to that, it laid off 900 employees across key PlayStation Studios such as Insomniac, Naughty Dog, and Guerrilla. It also closed The Getaway and VR Worlds developer London Studio.