Reuters: Sony Group Corporation in talks to acquire Kadokawa Corporation [Update 2]

Sony Group Corporation is in talks to acquire Kadokawa Corporation, according to a Reuters report citing two sources familiar with the matter.

Talks between the two sides are reportedly ongoing, and a deal could be signed in the coming weeks if successful, the sources said.

Sony Group Corporation declined to comment when asked by Reuters. Kadokawa Corporation said it could not comment.

Kadokawa Corporation is the parent company of numerous subsidiaries across publishing, film and visual, and cross media. Its game development subsidiaries include ACQUIRE, FromSoftware, Gotcha Gotcha Games, and Spike Chunsoft. Sony Group Corporation subsidiary and PlayStation manufacturer Sony Interactive Entertainment already owns a 14.09 percent stake in FromSoftware. Kadokawa Game Linkage, which operates major media like Famitsu and Dengeki, is also a games publisher.

Update 5:00 a.m.: Nikkei has reported that negotiations are currently in the early stages.

Update 11/20/24: Kadokawa Corporation has published a statement confirming reports that Sony Group Corporation has expressed the intent to acquire Kadokawa Corporation, but a decision has not yet been made. The full statement reads:

“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.”