Sony in Talks to Acquire Kadokawa Corp.
Sony Group Corp. is reportedly in talks to acquire Kadokawa Corp., a major Japanese publishing house. This move aligns with Sony's strategy to shift its focus from consumer electronics to the entertainment industry.
The global conglomerate has been actively pursuing mergers and acquisitions to strengthen its intellectual property portfolio. Negotiations between the two companies are still in the early stages.
Kadokawa boasts a diverse entertainment portfolio, including publishing, film, and animation businesses. The company is known for several hit titles. In 2021, Sony invested in Kadokawa, acquiring a 2.1 percent stake. This partnership aimed to combine Kadokawa's intellectual properties with Sony's global reach.
Furthermore, in 2022, Sony invested in FromSoftware Inc., Kadokawa's game subsidiary and the developer of the global hit "Elden Ring." Sony has allocated a growth investment budget of 1.8 trillion yen ($11.6 billion) for the three years from April 2024 for M&A and similar initiatives.
The company also owns anime production company Aniplex Inc. and Crunchyroll LLC, a U.S.-based anime streaming service. This potential acquisition of Kadokawa would further solidify Sony's position in the entertainment industry.