Kadokawa Encourages Sony to Pursue Acquisition of FromSoftware

According to recent reports, Kadokawa Corporation, the parent company of FromSoftware, has been nudging Sony Group toward potentially purchasing the company. Last week, rumors circulated suggesting that Kadokawa was preparing for a Sony buyout to ward off potential hostile takeovers by foreign entities, notably South Korea’s Kakao Corp. Now, Bloomberg’s latest findings offer some support for these claims.

Industry analysts believe that acquiring Kadokawa could significantly benefit Sony, with FromSoftware serving as an added advantage. As per Bloomberg, Kadokawa and Sony have been engaged in negotiations for several years. Kadokawa has been advocating for a complete buyout, while Sony has primarily shown interest in strategic investments, especially in anime and video game intellectual properties.

Interestingly, while Microsoft, Tencent, and Kakao have all reportedly shown interest in Kadokawa, Bloomberg stops short of confirming that Kadokawa is actively trying to avoid overseas takeovers in favor of collaborating with its local counterpart, Sony Group.

Kadokawa, a prominent name in anime since its establishment in 1945, boasts a vast collection of over 100,000 novels and comics. Although the company previously brushed off talks of a sale, the departure of its founding members and its public listing suggest it might be more open to offers now.

Bloomberg further notes that the mere hint of an acquisition has boosted Kadokawa’s market value to $4.1 billion, complicating potential negotiations with Sony, compared to just a week ago. Plus, there’s the added possibility of bids from other interested parties, leaving the outcome uncertain.

Analysts have emphasized to Bloomberg that acquiring Kadokawa would be a strategic move for Sony, with FromSoftware presenting significant value on its own. However, the primary allure seems to be the anime component rather than video games.