Sony Acquiring FromSoftware Parent Company Kadokawa

FromSoftware is one of the most prominent names in the gaming industry. Whatever game they've developed, from Armored Core to Dark Souls, Sekiro to ELDEN RING has been a massive hit. All of their games have something unique that challenges the players and keeps them occupied with the game for a very long time. And while there was a leak about FromSoftware's next game, codename CL, which came from FromSoftware's parent company, Kadokawa, recently released a financial report, another piece of news is about the delight the PlayStation fans.

We already know that Sony has invested more in Kadokawa and FromSoftware over the past few years. According to recent reports, Sony is buying FromSoftware's parent firm, Kadokawa Corporation. This surprising news comes to us via Reuters, which asserts that the two sides are now in talks and that a deal might be finalized in the next weeks. Sony has a financial interest in both Kadokawa and FromSoftware.

According to Sony's financial reports, in August 2022, Sony increased its investment in subsidiary FromSoftware, continuing a string of collaborations with Kadokawa. The two companies have worked together on multiple projects. Previously, Hermen Hulst, CEO of Sony Interactive Entertainment, hinted that Sony's interest in FromSoftware would extend beyond video games.

As a majority shareholder, Kadokawa controls 70% of FromSoftware, the developer of popular role-playing games, including Elden Ring, Dark Souls, and the Armored Core franchise, including the PlayStation-exclusive Bloodborne. Two minority shareholders, Sony has a 16% stake, and Tencent of China has a 14% stake in the unit.

While Tencent, a massive Chinese internet company, does own some Kadokawa shares, Sony will control more than 80% of the company together if this acquisition goes through. While Tencent was rumored to take over Ubisoft, their shares of Kadokawa closed 23% higher when news broke that Sony was buying out the company. Although Sony and Kadokawa both choose not to comment, we may expect to hear confirmation of the news soon.

With the acquisition of Kadokawa Corporation and the possible incorporation of FromSoftware as a PlayStation studio, Sony Group will have a formidable blend of games under their control. This might also add to Sony's commitment to delivering big titles every year; these renowned IPs might completely change the competition in the gaming industry.