Sony Engages in Negotiations to Acquire Kadokawa

Rumor has it that Sony might be setting its sights on a significant acquisition—Kadokawa, the parent company of FromSoftware. If this turns out to be true, it could be a major move for the gaming giant.

According to sources at Reuters, if these discussions go well, a deal could be finalized in just a few weeks. Before these reports surfaced, Kadokawa’s market capitalization was at $2.7 billion, with Sony’s shares closing up by 0.6%.

Currently, Sony holds a 2% stake in Kadokawa and also has a direct investment in FromSoftware, the talented team behind the hit game Elden Ring. When contacted, both Sony and Kadokawa chose not to comment on the potential acquisition.

Elden Ring, which hit the shelves in 2022, emerged from a partnership between the Japanese developer FromSoftware and George R.R. Martin, the mastermind behind A Song of Ice and Fire, the series inspiring Game of Thrones. The game has been hailed as another massive success for FromSoftware, earning them critical acclaim.

In our review, we remarked, “When you look at the big picture, Elden Ring isn’t just a triumph for FromSoftware but stands as a milestone for gaming as a whole. It reinvents the played-out open world formula by putting a spotlight on exploration and player freedom, doing away with those pesky markers and quest objectives that have been plaguing games since The Witcher 3. This fresh approach truly revitalizes the concept of an open world.”

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