Sony in talks to buy Tokyo-based publisher Kadokawa

Sony Group is reportedly in early discussions to acquire Kadokawa, the Tokyo-based media conglomerate behind the blockbuster game *Elden Ring*, according to reports from Nikkei and Bloomberg on Tuesday.

Sony in talks to buy Tokyo-based publisher Kadokawa

Nikkei described the negotiations as being in the "early stages," while Bloomberg cited unnamed sources stating that Sony has been exploring a potential offer and has held preliminary talks with Kadokawa. If the deal proceeds, it would bolster Sony’s games and anime portfolio, following its 2021 acquisition of Crunchyroll, a leading streaming platform for Japanese anime. Sony declined to comment on the reports when contacted, and Kadokawa has yet to issue a statement.

What Kadokawa does

Kadokawa, a major player in media and entertainment, is known for producing anime, publishing manga and books, and owning FromSoftware, the developer behind Elden Ring. The dark fantasy role-playing game, praised for its stunning visuals and challenging gameplay, was co-developed with Game of Thrones author George R.R. Martin. Nikkei reported that Sony is aiming to diversify its revenue streams by acquiring content rights, reducing its reliance on blockbuster titles. Such rights could generate royalties from songs used in movies, TV shows, or performances by other artists. Sony recently announced strong second-quarter profits, driven by gains in gaming, music, and imaging sensors. Its PlayStation 5 Pro console launched in November, but its steep price of €799.99 in Europe has sparked mixed reactions among gamers.