Sony Group has initiated early-stage talks to acquire Japanese publisher Kadokawa, signaling a push to expand its entertainment footprint. The potential deal values Kadokawa at approximately 530 billion yen ($3.4 billion).
The Tokyo-based electronics giant already holds a 2% stake in Kadokawa and 14% in its gaming subsidiary FromSoftware, known for hit titles like Elden Ring and Dark Souls. The acquisition would align with Sony’s strategy to secure intellectual property rights and reduce reliance on new releases for revenue generation.
The move follows Sony’s pattern of strategic media acquisitions, including its $1.18 billion purchase of anime streaming service Crunchyroll from AT&T in 2021. Sony has allocated 1.8 trillion yen through March 2027 for acquisitions and strategic investments.
Market reaction was swift, with Kadokawa shares jumping 23% to 3,745 yen at Tuesday’s close, while Sony gained 1% to 2,936 yen. The deal would complement Sony’s existing anime distribution business through Aniplex and potentially strengthen its position in gaming and digital entertainment.
Neither company has officially confirmed the discussions, which sources indicate are in preliminary stages.
