Sony is currently engaged in discussions to acquire Kadokawa, the prominent Japanese media company known for the "Elden Ring" game, according to two sources with knowledge of the situation. This move is part of Sony's strategy to enhance its entertainment portfolio.
The negotiations are still in progress, and if they reach a successful conclusion, a formal agreement could be finalized in the upcoming weeks, the sources indicated.
Sony has chosen not to provide any comments on the matter, while Kadokawa has stated that it is unable to comment at this time.
As of 0608 GMT, Kadokawa's shares were only available for bidding at the maximum daily limit of 3,745 yen.
Sony already holds a 2% stake in Kadokawa and has an investment in its subsidiary FromSoftware, the studio behind the acclaimed fantasy role-playing game.
"Elden Ring" is a collaborative effort between renowned game director Hidetaka Miyazaki and George R.R. Martin, the author of "Game of Thrones."
Founded in 1945 as a publishing company, Kadokawa has since diversified its franchises, such as "Re:Zero," into various media including games, anime, events, and merchandise. Before the Reuters report, its market capitalization was approximately $2.7 billion.
Sony, recognized for creating the Walkman, has evolved from an electronics manufacturer into a major player in the entertainment and technology sectors, encompassing movies, music, gaming, and semiconductors.
"Beloved characters and intellectual property (IP) can endure for 30, 50, or even 100 years," stated Sony CEO Kenichiro Yoshida last year. "This is an area we aim to invest in for sustainable growth."
Anime remains a key focus for Sony, with its global expansion driven by the rise of streaming services and increased interest in Japanese culture.
With a market valuation of around $114 billion, Sony recently abandoned a $10 billion merger between its Indian division and Zee Entertainment Enterprises in January.