FromSoftware's parent company confirms that Sony is looking to buy it out

Elden Ring character with snow witch Ranni on their back with her arms around their neck
(Image credit: ApolloHoo / FromSoftware)

FromSoftware parent Kadokawa Corporation has confirmed that Sony has in fact expressed formal interest in acquiring the company.

The proposed acquisition was first reported yesterday by Reuters and Nikkei, each citing their own separate sources saying a deal was in the works. In a statement released today acknowledging those reports, Kadokawa said that while no formal announcement about a possible buyout has been made, "the company has received an initial letter of intent to acquire the company's shares."

Kadokawa added that "no decision has been made at this time," but given how these things generally work, the receipt of a letter of intent indicates that the process is fairly far along: The initial chit-chat and wheeling-dealing is over, and everyone is more or less prepared to move forward. A regulatory body could halt the acquisition (although given how that worked out with Microsoft and Activision-Blizzard, I can't say my confidence in the ability of government agencies to keep big companies in line is at an all-time high) but aside from that, it's very likely that this deal will be done.

Snapping up Kadokawa would be a big get for Sony. FromSoft is obviously a crown jewel, but Kadokawa has its fingers in many pies, particularly anime and manga development and publication; it also owns, through its Dwango subsidiary, Danganronpa studio Spike Chunsoft. In its latest earnings report, Kadokawa reported significantly more income from its "publication/IP creation" operations (books, manga, and so on) and animation/film than gaming. Sony has shown a clear interest in owning more of that space in recent years, after acquiring Funimation in 2017 and Crunchyroll in 2021. Earlier this year Sony looked into buying Infocom, one of Japan's largest online comic platforms, though a private equity company came out with the winning bid.

The downsides are obvious—media consolidation is a scourge upon the land and all that—but I think at this point the best we can realistically hope for is that Kadokawa's employees come out the other side in better shape than those left behind by Microsoft and Embracer. I can't say my confidence in that is especially high right now either.

TOPICS
Andy Chalk
US News Lead

Andy has been gaming on PCs from the very beginning, starting as a youngster with text adventures and primitive action games on a cassette-based TRS80. From there he graduated to the glory days of Sierra Online adventures and Microprose sims, ran a local BBS, learned how to build PCs, and developed a longstanding love of RPGs, immersive sims, and shooters. He began writing videogame news in 2007 for The Escapist and somehow managed to avoid getting fired until 2014, when he joined the storied ranks of PC Gamer. He covers all aspects of the industry, from new game announcements and patch notes to legal disputes, Twitch beefs, esports, and Henry Cavill. Lots of Henry Cavill.

Read more
Nightreign knight holds his fist in menacing fashion
My worst fears of a PlayStation-exclusive future for FromSoftware have been averted for now: Sony is forming a 'strategic alliance' with parent company Kadokawa, but hasn't bought it outright
BloodbornePSX - A hunter standing in front of a lantern
Sony enforcers execute a legal visceral attack on the BloodbornePSX demake, continuing its mission to eradicate all traces of FromSoft's beloved RPG on PC
Bloodborne in excelsis.
Retired PlayStation exec reckons Bloodborne PC hasn't happened because Miyazaki 'cannot do it himself, but he doesn’t want anyone else to touch it'
Bloodborne art
Sony bullies Bloodborne 60 fps mod off the internet with DMCA takedown as it continues to let the FromSoft classic gather dust on PS4
Days Gone's Deacon St. John giving you the winky face
Using the State of Play showcase to announce a remaster of Days Gone makes it feel like Sony has graduated to deliberately trolling Bloodborne sickos for kicks
Shuhei Yoshida speaks on a conference stage.
Former Sony exec finally says the quiet part out loud: putting PlayStation games on PC is 'almost like printing money'
Latest in Gaming Industry
A masked man with an axe in the woods
Rebellion CEO seems kind of awed by major studios making massive videogames: 'How do you organize a game that has 2,000 people working on it?'
A computer screen with program code warning of a detected malware script program. 3d illustration
Coder faces 10 years' jailtime for creating a 'kill switch' that screwed-up his employers' systems when he was laid off
Atomfall screenshot
Rebellion CEO puts the studio's recent avoidance of layoffs down to control of scope and cost: 'Sometimes we say, guys, this game's too big'
Judge Dredd promotional image in Warzone
Half-a-dozen 2000AD games were in the works before fizzling out: 'The games you get to see are a tiny representative of the number that get started—sadly'
sniper elite 5 cover
Sniper Elite CEO reckons Swen Vincke is right to snarl at short-sighted publishers: 'You could argue that their business at senior level isn't making games… their business is managing their shareholders' perceptions'
Kasumi and Joker in Persona 5 Royal.
After 31 years in games, Persona director Katsura Hashino just got a 'Newcomer Award' and $5,000 from the Japanese government
Latest in News
Marvel Rivals Human Torch
Marvel Rivals is carrying on the tradition of chaotic patches after buffing two of the most annoying heroes, but I main one of them, so I'm not complaining
 photo shows a factory tool that places lids on data center system-on-chips at an Intel fab in Chandler, Arizona, in December 2023. In February 2024, Intel Corporation launched Intel Foundry as the world’s first systems foundry for the AI era, delivering leadership in technology, resiliency and sustainability.
So, wait, now TSMC is supposedly pitching a joint venture with Nvidia, AMD and Broadcom to run Intel's ailing chip fabs?
Monster Hunter Wilds Artian weapon crafting - Gemma holding hot metal
Gemma's English VA is right with us on Monster Hunter Wild's confusing menus, which makes me feel a little better for having to Google symbols all the time
Sapphire Pulse Radeon RX 9070 XT on a red and orange background
Some Sapphire RX 9070/9070 XT graphics cards have hard-to-spot foam inside that must be removed or it 'may result in a decrease in cooling capacity or product failure'
Promotional image of the HP Envy Inspire inkjet printer
Haunted printers turning on by themselves and printing nonsense has to be one of my favorite Windows 11 bugs ever
The UHPILCL water cooled gaming laptop
This water-cooled gaming laptop packs a full-size desktop RTX 5090 and even fits in a backpack, but I sure wouldn't want it in mine