What you need to know
- Reuters is reporting that Sony is in talks to purchase Kadokawa, a Japanese media publishing conglomerate.
- Kadokawa currently owns FromSoft, the studio behind games such as the Dark Souls franchise, Elden Ring, and Armored Core.
- Trading on Kadokawa stock has gone “bid-only” at the daily limit of 3,745 yen.
As a seasoned analyst with over two decades of experience in the gaming industry, I must say that this potential acquisition by Sony of Kadokawa could be a game-changer, to use an overused term. Sony’s interest in Kadokawa, and by extension FromSoft, is not surprising given the success of Elden Ring and the potential of the Shadow of the Erd Tree DLC. However, what intrigues me most is the possibility of Sony expanding its publishing prowess and diving deeper into anime and manga IPs.
Based on reports from Reuters, it appears that Sony could be negotiating a deal to acquire Kadokawa Corporation, the prominent Japanese conglomerate known for its media dominance, which presently controls FromSoft.
As a researcher studying the gaming industry, I can’t help but admire the esteemed reputation that FromSoftware has earned. This studio is renowned for their groundbreaking work, from the legendary Dark Souls series, Bloodborne, and the Armored Core franchise, to their latest collaborative masterpiece, Elden Ring, which released in 2022 and became a massive success. What sets Elden Ring apart is its unique partnership with George R.R. Martin, author of the highly popular Game of Thrones series, who contributed the narrative for this extraordinary game.
Discussion about the game was already widespread due to recent news that its Shadow of the Erd Tree DLC had been nominated for Game of the Year at The Game Awards in 2024. This nomination led some to debate whether a DLC could be considered eligible for Game of the Year.
It’s possible that only part of Sony’s motivation for considering Kadokawa is FromSoft. Instead, they might be drawn to Kadokawa due to its extensive library of content across various mediums such as books, manga, film, and games. Perhaps Sony aims to strengthen its publishing capabilities or secure anime and manga intellectual properties for the future beyond just adding FromSoft to their gaming collection. Interestingly, Sony already owned a 2% share in Kadokawa and additionally had shares in FromSoftware. Furthermore, Sony has been focusing on anime growth even before this potential acquisition, hinting at a strategic move rather than a spontaneous decision.
Sony’s present market worth is approximately $115 billion, contrasted with Kadokawa whose market capitalization was around $2.7 billion. This isn’t a new endeavor for Sony in terms of major acquisitions this year, as they had previously aimed to acquire the Indian publisher ZEE Entertainment Enterprises. The acquisition was initially proposed back in 2021; however, it didn’t go through and the merger was abandoned in January 2024.
According to reports from Reuters, Sony’s planned acquisition of ZEE Entertainment would cost approximately $10 billion. As for potential negotiations with Kadokawa, while the price remains undisclosed, successful discussions could lead to a deal being sealed within weeks, though neither company has confirmed this information.
This story is currently developing…
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2024-11-19 10:39