FromSoftware's parent company wants Sony to buy all of it, not just parts

It was only recently that Kadokawa, the parent company of renowned video game development studio FromSoftware, confirmed Sony officially expressed interest in purchasing the company, and now more details have emerged about the ongoing discussion.

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In a new article by Bloomberg, Sony and Kadokawa are currently engaging in discussions about a potential merger, which would add FromSoftware and its catalog of established video game IPs, such as Elden Ring and the Dark Souls franchise, to Sony's portfolio of first-party offerings. However, the Bloomberg report states Sony is only interested in purchasing select Kadokawa IP, and the company has massive ownership over the Japanese anime and manga industry in Japan, which Sony is currently after in this deal.

The article states Kadokawa is only interested in the deal if Sony purchases the entire company and all of its assets rather than selling over select IP. Sony's reported push to acquire Kadokawa's anime and manga assets falls right in line with the company's previous acquisition of Crunchyroll in 2021 for $1.2 billion. It appears Sony is after more of the anime market, which makes perfect sense considering it is one of the fastest-growing sub-entertainment industries, with Japan's anime industry doubling over 10 years to $19.5 billion in 2022.

Robin Zhu, an analyst at Bernstein, told Bloomberg that Sony looking to purchase Kadokawa is probably one of the best deals the company can make right now and "one of the most consequential transactions in the video game industry's history."

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