Sony Reportedly Pursuing Acquisition of Kadokawa Corporation
Last week, the Japanese entertainment giant Kadokawa confirmed that Sony had expressed its intention to acquire the company, which would give Sony control of the developer behind Elden Ring, FromSoftware, as well as a variety of other entertainment platforms and intellectual properties.
However, according to a report from the Japanese financial outlet Toyo Keizai (via Automaton), it will be difficult for Sony to secure the necessary funds to purchase all of Kadokawa. The entire company is reportedly valued at around 640 billion yen, or approximately 4.3 billion dollars, and Sony is said to not have this amount of capital readily available.
Instead, it is said that Sony has attempted to structure its bid in a way that would allow them to acquire the parts of Kadokawa they are interested in, such as FromSoftware, but Kadokawa’s management is apparently only interested in a complete deal.