Sony Reportedly in Negotiations to Acquire FromSoftware’s Parent Company, Maker of Elden Ring
Sony is reportedly in negotiations to acquire Kadokawa, the influential Japanese media conglomerate behind Elden Ring, the critically acclaimed game developed by FromSoftware. The deal, if finalized, would see Sony expand its already diverse entertainment portfolio, which spans gaming, music, and film. Two sources familiar with the matter have revealed that discussions are ongoing, with the possibility of a deal being signed in the coming weeks.
Kadokawa’s stock saw a significant surge following the news, jumping 23 percent to hit the daily trading limit. Before the Reuters report, the company’s market capitalization was estimated to be around $2.7 billion (approximately Rs. 22,791 crore). Despite the buzz surrounding the potential acquisition, neither Sony nor Kadokawa have provided official comments on the matter, with both companies keeping details under wraps for the time being.
Sony’s existing relationship with Kadokawa already includes a two percent stake in the company, as well as a share in Kadokawa’s subsidiary, FromSoftware. The latter is the renowned developer behind Elden Ring, which became a global hit due to its open-world design and collaboration between game director Hidetaka Miyazaki and Game of Thrones author George R.R. Martin. The success of Elden Ring has solidified FromSoftware as one of the most influential game studios of the decade, and acquiring Kadokawa could give Sony greater control over its portfolio of popular franchises.
If Sony successfully acquires Kadokawa, it would be a major strategic move to bolster its position in the gaming and entertainment sectors. The addition of FromSoftware and its associated intellectual properties would further strengthen Sony’s PlayStation ecosystem, complementing its existing slate of first-party studios. This potential acquisition also signals a growing trend of consolidation in the gaming industry, where major players are increasingly looking to secure top-tier developers to stay competitive in the ever-evolving market.
