‘Elden Ring’ developer FromSoftware’s parent company Kadokawa ends Sony buyout talks, sells 10% ownership in new shares instead

As a tech enthusiast with a deep-rooted love for gaming and a soft spot for the Xbox ecosystem, this latest development has me both relieved and intrigued. I still remember the thrill of playing Ninja Blade on my Xbox back in the day, even though it didn’t quite live up to FromSoftware’s usual standards.

Xbox fans can breath a sigh of relief, at least for now.

Recently, whispers started about Kadokawa, FromSoftware’s parent company, possibly considering a sale to Sony. If this were to happen, Sony would acquire control over hit series such as Elden Ring, intensifying its rivalry with Xbox. In the past few years, FromSoftware has risen to gaming industry titan status due to consistent triumphs in franchises like Dark Souls and Armored Core, with the latter setting trends for an entire genre.

FromSoftware has a rich background with PlayStation systems, creating games like Demon’s Souls and Bloodborne, which were initially only playable on these consoles. Additionally, they developed the Xbox exclusive title, Ninja Blade. While some may recall it, the game didn’t garner the same positive response as other FromSoftware titles did.

Kadokawa Corporation, known for its dominance in the anime and manga sector, has become an area of focus for Sony as their traditional hardware business started to wane. Given this context, acquiring Kadokawa would have been a strategic move for Sony, although it appears that such an acquisition is not taking place at present.

Through the efforts of Wario64, Sony and Kadokawa have finalized negotiations, leading to the formation of a “Strategic Capital and Business Partnership.” As part of this agreement, Kadokawa has issued 12,054,100 new shares, granting Sony a 10% ownership in their business. This makes Sony the largest shareholder in Kadokawa, surpassing Tencent’s previous 6.86% stake. Previously, Tencent had invested approximately $264 million USD for its own “Strategic Business Alliance” with Kadokawa. In contrast, Sony’s investment is valued at around $331.2 million USD.

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2024-12-19 11:38