There could be a growing sense of optimism within the Kadokawa offices as Sony confirms interest in purchasing the FromSoftware parent company. It was just a few weeks ago when news broke regarding the console manufacturer’s next potential game studio acquisition which would not only include the Elden Ring developer, but also much more. The Kadokawa Corporation includes divisions for film and anime, publishing for books, manga, and magazines, and cross-media interests spanning mobile, internet, and video games. Kadokawa has already previously entered into a Captial Alliance partnership agreement with Sony and a digital advertising company called CyberAgent back in 2021 so there’s already an established history between the two.
Unrest at home
Even as Sony confirms interest in purchasing Kadokawa, there seems to be ongoing unrest at the company with some hoping a takeover will result in new management. Things have been a bit rocky for the corporation over the last couple of years following the arrest of its CEO’s son, and then a cyberattack that resulted in a data leak revealing employee personal information. This data leak, and more specifically, a lack of acknowledgment from management, appears to be a sticking point that staff are reportedly unhappy about.
- “The people around me are thrilled at the prospect of an acquisition by Sony. That’s because there’s a certain number of employees who are dissatisfied with the Natsuno administration, which didn’t even bother to hold a press conference after peoples’ personal information was leaked in the cyberattack. They expect that if Sony were to acquire the company, they would get rid of the president first,” – Anonymous Employee (via Automation)
While some staff at Kadokawa may want Sony’s offer to be accepted there could also be a downside. Economic analyst Takahiro Suzuki suggests in speaking with Bunshun that while Sony would absolutely stand to gain in the deal since it would include many intellectual properties spanning multiple media formats, Kadokawa itself may not see much benefit other than the sale.
- “Kadokawa will lose its independence, and management will become stricter. If they want to keep developing their business as freely as they have until now, [the acquisition] would be a bad choice. They’d have to be prepared for publications that don’t lead to IP creation being put under scrutiny.”
Sony confirms interest in a deal
The day after news first broke regarding this potential buyout Kadokawa issued its own statement acknowledging an offer had been made but things have been fairly quiet since. However, Yahoo Japan has reported that Sony has indeed confirmed it has communicated interest in a deal. Kadokawa execs have also been interviewed but are refraining from comment until more official statements are released, but do seem optimistic about a buyout as well.
Per Sony Group (machine translated):
- “It is true that we have expressed our initial intentions. We would appreciate it if you would refrain from commenting further.”