Kadokawa confirms Sony and PlayStation's interest in an acquisition, will FromSoftware's parent company accept the offer?

This week, reports emerged about the supposed interest of Sony and PlayStation in acquiring Kadokawa Corporation, a Japanese conglomerate with various video game studios and a significant anime distribution business. The news caught the attention of many, as the possible acquisition involves FromSoftware, the studio behind ELDEN RING and Dark Souls.

What started as a rumor is now confirmed, as Kadokawa Corporation addressed the matter and revealed that Sony recently sent them a letter of intent to purchase. While few details were disclosed, one thing is clear: for now, no decision has been made.

Kadokawa confirms Sony's intent to purchase

In recent years, Sony has invested heavily to expand the reach of several of its businesses. It has acquired various video game development studios and anime platforms—two areas where Kadokawa has a strong presence.

For this reason, Sony is interested in acquiring the conglomerate, which owns developers like FromSoftware, Spike Chunsoft, ACQUIRE, Gotcha Gotcha Games, and more.

In a statement, Kadokawa revealed that it received a letter of intent to purchase from Sony, confirming this week's reports. However, this does not mean that the acquisition will necessarily go through.

The companies are in early talks to reach a possible agreement. Kadokawa emphasized that no decision has yet been made on whether to accept Sony's offer, the details of which remain a mystery.

“There are some articles on the acquisition of KADOKAWA Corporation (hereinafter 'the Company') by Sony Group Inc. However, this information is not announced by the Company. The Company has received an initial letter of intent to acquire the Company's shares, but no decision has been made at this time. If there are any facts that should be announced in the future, we will make an announcement in a timely and appropriate manner.”

What companies has PlayStation acquired recently?

Sony has strengthened PlayStation in recent years with the purchase of Bungie, the popular studio behind Destiny and the first Halo games. It also invested in Haven Studios, a team founded by Jade Raymond, known for her work on Assassin's Creed.

Additionally, it acquired Firewalk Studios, a company that recently closed after the resounding failure of Concord. Sony also bought iSize, a firm specializing in machine learning and artificial intelligence for video optimization, to improve its multimedia products.

Lastly, it acquired Audeze, an audio brand, to elevate the sound experience of PlayStation products to a new level. Most of these acquisitions are aimed at enhancing Sony’s strategy focused on live-service games.