All or nothing: Kadokawa doesn't want to sell FromSoftware Studios to Sony and is pushing for a full merger

Sony and Kadokawa Corporation Lototypes. Source: Gematsu

Last week, the media reported that Sony was in merger talks with Japanese media holding Kadokawa Corporation. This information was confirmed by Kadokawa management, but now details of the discussion between the two giants have become known.

Here's What We Know

Edition Bloomberg reported that Sony has long been interested in acquiring Kadokawa and has been negotiating for many years. The deal has not yet taken place due to the fact that the companies can not come to an agreement: Kadokawa wants to sell all assets, including book publishing, advertising and property rental agencies, and Sony, in turn, is interested only in those studios that work on anime and video games.

Kadokawa, founded in 1945, is a rare beast in modern Japan. It owns the rights to more than 100,000 fantasy and science fiction novels and comics suitable for anime, and has the capacity to create anime series from scratch. The company also has broad and deep connections in the country's creative sector, making it easy to attract award-winning artists. And, lest we forget - because Sony certainly hasn't - Kadokawa owns stakes in very reputable game studios, including FromSoftware, developer of Elden Ring.

Undoubtedly, it is FromSoftware that Sony is primarily interested in - one of the most reputable studios not only in Japan, but around the world. Journalists have estimated that a third of Kadokawa's value is made up by FromSoftware head Hidetaka Miyazaki. Of course, this is a metaphor, but it carries a great deal of truth.

By the way, the Bloomberg article mentions that Microsoft is also interested in buying Kadokawa and obviously not because of the advertising agency, so the fight for the company is reaching a new level.

Source: Bloomberg