Sony is negotiating the acquisition of the Japanese media holding Kadokawa Corporation, which, among other things, includes FromSoftware, the company that created Elden Ring. This was reported by Reuters.
Negotiations between the two sides are ongoing and, if successful, the deal could be signed in the coming weeks, sources said. Kadokawa shares closed 23% above their daily high. Its market capitalization is about USD 2.7 billion.
Sony owns a 2% stake in Kadokawa and FromSoftware. Previously, the companies collaborated to release the PlayStation 4 exclusive Bloodborne in 2015. This game was recognized by players and critics, becoming one of the most valuable platform exclusives. However, Bloodborne still hasn't received a PC port or remaster for PS5 with 60 FPS support.
Earlier, Sony was one of the publishers of Demon's Souls, which is also a PlayStation exclusive and recently received a remake from other developers Bluepoint Games.
Kadokawa started as a literary publisher back in 1945. Since then, the company has expanded its activities to games, anime, and even festivals. Today, the company is known as an anime publisher. But in recent years, analysts have characterized the conglomerate's business as unstable.
Two years ago, Tsuguhiko Kadokawa, the son of the company's founder, resigned as chairman after being indicted on bribery charges related to the Tokyo Olympics.