Sony Reportedly in Negotiations to Acquire Kadokawa, the Owner of Elden Ring and Dark Souls Developer FromSoftware

Sony is currently in discussions to acquire Kadokawa Corporation, the prominent Japanese media conglomerate that primarily owns FromSoftware, the renowned creators of Elden Ring, Bloodborne, and Dark Souls. This move seems to be part of Sony’s strategy to broaden its entertainment portfolio.

According to a report from Reuters, two insiders have confirmed that conversations between Sony and Kadokawa are actively ongoing. If things progress well, the deal might be finalized “in the coming weeks.”

Currently, Sony holds a 14% stake in FromSoftware, while Tencent, a Chinese powerhouse, retains just over 16%. Kadokawa, on the other hand, maintains the lion’s share at around 70%. When approached, neither Sony nor Kadokawa commented on the matter.

Acquiring Kadokawa would not only mean that Sony gains greater control over FromSoftware, known for other popular titles like Armored Core and Sekiro, but also encompasses a wider range of gaming and media properties. Kadokawa’s gaming portfolio includes Spike Chunsoft, responsible for Dragon Ball: Sparking! Zero and Danganronpa, Acquire, co-developer of Octopath Traveler, and Gotcha Gotcha Games, known for RPG Maker. Their influence extends to film, TV, and publishing, particularly in anime.

With Sony already owning Crunchyroll and Funimation, the acquisition could be as enticing for its media assets as for the challenging games where players face off against formidable bosses. These ventures align with Sony’s existing platforms and could create synergies within their entertainment ecosystem.

On the gaming side, this development comes during a turbulent year for Sony-owned PlayStation, marked by staff layoffs and the shuttering of studios, including the complete withdrawal of Concord from the market just under two weeks post-launch.

What’s your take on Sony potentially buying Kadokawa and gaining greater control over FromSoft? We’d love to hear your thoughts in the comments below!