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On November 19, 2024, it was announced that Sony was planning to acquire KADOKAWA, which operates anime, movie, and game businesses.It was reported. The next day, KADOKAWA’s stock price rose by up to 46%, leading to confusion, but several media outlets are speculating that the company may be aiming to take control of the game studio.
Exclusive: Sony is in talks to buy media powerhouse behind ‘Elden Ring’ | Reuters
https://www.reuters.com/markets/deals/sony-talks-buy-media-powerhouse-behind-elden-ring-sources-say-2024-11-19/
Sony Could Acquire FromSoftware’s Owners In Most Annoying Attempt to Make Bloodborne Remaster Real
https://gizmodo.com/sony-could-acquire-fromsoftwares-owners-in-most-annoying-attempt-to-make-bloodborne-remaster-real-2000526314
KADOKAWA owns 70% of FromSoftware, which has popular titles such as “ELDEN RING,” while Sony owns 2% of KADOKAWA and 14% of FromSoftware. By acquiring KADOKAWA, Sony will have an absolute majority, which means that the overseas mediaGIZMODOconsiders that “In effect, From Software may become a PlayStation First company.”
KADOKAWA has made Acquire, known for works such as “Tenchu”, into a 100% subsidiary, and indirectly owns Spike Chunsoft, the creator of the “Furai no Shiren” series, as a consolidated subsidiary.
If KADOKAWA, which handles not only games but also anime and other entertainment in general, becomes a subsidiary of Sony, Sony will have supremacy in many fields.
Reuters reports, “Sony CEO Kenichiro Yoshida said, “Beloved characters and intellectual property can last for 30, 50, or 100 years.We want to invest in them for sustainable growth.” “It was,” he pointed out. GIZMODO quoted these words and said, “Sony is looking to enter more anime markets and acquire more media franchises.” GIZMODO also cited Microsoft’s acquisition of Activision Blizzard, saying, “This is yet another monopolistic initiative by a major company that could have a serious impact on From Software’s works.”
Sony has closed down the development studio behind the game “CONCORD,” which discontinued service two weeks after its release.closureIn addition, Sony’s game studio Bungie will lay off around 100 people, and Sony Interactive Entertainment will lay off 900 employees in February 2024.dismissalThese are difficult times for the game business. In this regard, foreign mediaCryptopolitanpoints out that “this deal could provide a positive outlook for Sony’s future in the face of several setbacks.”
On the other hand, KADOKAWA also announced on November 7, 2024.(PDF file)Financial reportstated that From Software’s “ELDEN RING” main story and DLC contributed significantly to the increase in sales. In addition, the company has expanded its development and publishing pipeline, creating a system that allows the entire group to constantly release new games.
In addition, KADOKAWA has a large amount of IP (intellectual property) such as anime and games, and while realizing the enlargement and longevity of each work, it is also highly anticipated that it will be able to plan works that aim to become big hits, mainly based on its own original works. The company says it aims to continuously increase profits through production quality and in-house production. From this point of view, some believe that an acquisition agreement is beneficial for both parties.
Push Squareis the largest shareholder of KADOKAWA.Korean company“There is some speculation on the internet that KADOKAWA wants to continue as a Japanese organization. Although it has not been proven, it is not clear why KADOKAWA is suddenly planning to negotiate with Sony. It may help explain this.”
If the talks are successful, a deal could be signed within weeks, according to Reuters, which first reported the matter.
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