Sony in talks to acquire Kadokawa
11-19-24 | 12:18 AM
#1
Thread Starter
Anime Talk Contributor / Moderator
Sony in talks to acquire Kadokawa
https://www.reuters.com/markets/deal...ay-2024-11-19/
http://4NN.cx/.218030
https://www.gematsu.com/2024/11/reut...wa-corporation
Exclusive: Sony in talks to buy media powerhouse behind 'Elden Ring', sources say
NEW YORK/TOKYO, Nov 19 (Reuters) - Sony, is in talks to acquire Kadokawa, the Japanese media powerhouse behind the "Elden Ring" game, two sources familiar with the matter said, as the technology giant looks to add to its entertainment portfolio.
The talks between the two sides are ongoing and, if successful, a deal could be signed in the coming weeks, the sources said.
Sony declined to comment. Kadokawa said it cannot comment.
NEW YORK/TOKYO, Nov 19 (Reuters) - Sony, is in talks to acquire Kadokawa, the Japanese media powerhouse behind the "Elden Ring" game, two sources familiar with the matter said, as the technology giant looks to add to its entertainment portfolio.
The talks between the two sides are ongoing and, if successful, a deal could be signed in the coming weeks, the sources said.
Sony declined to comment. Kadokawa said it cannot comment.
https://www.gematsu.com/2024/11/reut...wa-corporation
Reuters: Sony Is in Talks to Acquire Kadokawa
2 sources report deal could be signed in coming weeks
Reuters reported on Tuesday that Sony is in talks to acquire Kadokawa. According to Reuters' two sources "familiar with the matter," the talks are ongoing, and a deal could be signed in the coming weeks. Sony declined to comment to Reuters on the acquisition talks, and Kadokawa said it cannot give any comments.
Sony already has a 2% stake in Kadokawa and a stake in its subsidiary FromSoftware (Elden Ring RPG developer).
Sony's Funimation Global Group completed its acquisition of Crunchyroll from AT&T on August 9, 2021, after the company first announced the acquisition in December 2020. The purchase price was US$1.175 billion, and the proceeds were paid in cash at closing. Funimation's home video releases are now listed under Crunchyroll. Crunchyroll reached over 15 million paid subscribers to the anime streaming service as of this year.
Sony announced in May that it will launch an academy to develop talent to create anime. The academy will aim to "[nurture] anime creators in global markets, mainly by Aniplex and Crunchyroll with collaboration from across the industry."
Kadokawa acquired anime studio Doga Kobo in July. Kadokawa's anime studios now include Doga Kobo ENGI, Studio KADAN, Raging Bull, and the newly formed Bellnox Films, as well as the affiliated companies Kinema Citrus and Studio Chizu.
Kadokawa was hit by a cyber attack that included ransomware on June 8. Its Dwango subsidiary's Niconico video resumed some of its services on August 5, after the cyber attack.
Update: Kadokawa's publishing companies include Kadokawa Key-Process (which handles the imprints ASCII Media Works, Enterbrain, Fujimi Shobo, and Media Factory), KADOKAWA Game Linkage (which publishes B's-LOG, Comptiq, Dengeki Nintendo, and Weekly Famitsu), J-Novel Club, and Yen Press. Its game subsidiaries include Acquire, FromSoftware, Gotcha Gotcha Games, and Spike Chunsoft.
2 sources report deal could be signed in coming weeks
Reuters reported on Tuesday that Sony is in talks to acquire Kadokawa. According to Reuters' two sources "familiar with the matter," the talks are ongoing, and a deal could be signed in the coming weeks. Sony declined to comment to Reuters on the acquisition talks, and Kadokawa said it cannot give any comments.
Sony already has a 2% stake in Kadokawa and a stake in its subsidiary FromSoftware (Elden Ring RPG developer).
Sony's Funimation Global Group completed its acquisition of Crunchyroll from AT&T on August 9, 2021, after the company first announced the acquisition in December 2020. The purchase price was US$1.175 billion, and the proceeds were paid in cash at closing. Funimation's home video releases are now listed under Crunchyroll. Crunchyroll reached over 15 million paid subscribers to the anime streaming service as of this year.
Sony announced in May that it will launch an academy to develop talent to create anime. The academy will aim to "[nurture] anime creators in global markets, mainly by Aniplex and Crunchyroll with collaboration from across the industry."
Kadokawa acquired anime studio Doga Kobo in July. Kadokawa's anime studios now include Doga Kobo ENGI, Studio KADAN, Raging Bull, and the newly formed Bellnox Films, as well as the affiliated companies Kinema Citrus and Studio Chizu.
Kadokawa was hit by a cyber attack that included ransomware on June 8. Its Dwango subsidiary's Niconico video resumed some of its services on August 5, after the cyber attack.
Update: Kadokawa's publishing companies include Kadokawa Key-Process (which handles the imprints ASCII Media Works, Enterbrain, Fujimi Shobo, and Media Factory), KADOKAWA Game Linkage (which publishes B's-LOG, Comptiq, Dengeki Nintendo, and Weekly Famitsu), J-Novel Club, and Yen Press. Its game subsidiaries include Acquire, FromSoftware, Gotcha Gotcha Games, and Spike Chunsoft.
Last edited by WTK; 11-19-24 at 07:42 PM.
11-19-24 | 08:44 AM
#2
DVD Talk Godfather
Re: Sony in talks to acquire Kadokawa
Weird to see Kadokawa mainly referenced as the owner of FromSoftware since I always associate it with publication or anime. Makes it seem more like they're just shoring up their Playstation division instead of increasing their reach basically everywhere (I know that's the article and not WTK's fault)
11-19-24 | 07:30 PM
#3
Thread Starter
Anime Talk Contributor / Moderator
Re: Sony in talks to acquire Kadokawa
I would be surprised if Sony only acquires only gaming from Kadokawa. Kadokawa's anime and publishing IPs should be more intriguing to Sony. Having these IPs also means gaining bigger control of what new anime gets produced each season.
11-19-24 | 07:42 PM
#4
DVD Talk Hero
Re: Sony in talks to acquire Kadokawa
This makes me sick. Sony has globalized their product whenever they can and I know they'll ruin Kadokawa if they do acquire the anime division, which I fully expect.
11-20-24 | 12:46 PM
#6
Thread Starter
Anime Talk Contributor / Moderator
Re: Sony in talks to acquire Kadokawa
Kadokawa confirms letter intent from Sony to acquire it.
What happens now? Kadokawa board could form a committee to evaluate the proposal. Same thing happened in the summer when a Singapore-based investment firm tried (and failed) to take Tohokushinsha private.
What happens now? Kadokawa board could form a committee to evaluate the proposal. Same thing happened in the summer when a Singapore-based investment firm tried (and failed) to take Tohokushinsha private.
12-10-24 | 11:45 PM
#7
Thread Starter
Anime Talk Contributor / Moderator
Re: Sony in talks to acquire Kadokawa
https://automaton-media.com/en/news/...in-leadership/
Kadokawa’s employees are reportedly optimistic about a Sony buyout because they’re itching for a change in leadership
Major Japanese publisher and FromSoftware owner Kadokawa confirmed Sony Group’s buyout intent on November 20, setting both the entertainment industry and stock market abuzz. Although no decisions have been announced so far, opinions on the potential buyout have been divided.
Talking to Bunshun, economic analyst Takahiro Suzuki offered the opinion that while Sony’s entertainment sector would greatly benefit from gaining access to Kadokawa’s IPs, the latter would have little to gain from the deal.
“Kadokawa will lose its independence, and management will become stricter. If they want to keep developing their business as freely as they have until now, [the acquisition] would be a bad choice. They’d have to be prepared for publications that don’t lead to IP creation being put under scrutiny.”
It seems that Natsuno’s sluggish response during this crisis has caused significant dissatisfaction among Kadokawa’s employees, to the point of his potential dismissal fueling positive sentiment towards Sony’s acquisition.
Meanwhile, former chairman Tsuguhiko Kadokawa, who belongs to Kadokawa’s founding family, was “surprised, but appeared positive” about the acquisition, according to an insider interviewed by Bunshun. Kadokawa recently resigned from his position after being indicted in an Olympic bribery case, which no doubt also shook up the company’s administration.
The outcome of Sony and Kadokawa’s M&A negotiations remains to be seen, although some experts say that Sony could potentially back out if the deal proved too expensive.
Kadokawa’s employees are reportedly optimistic about a Sony buyout because they’re itching for a change in leadership
Major Japanese publisher and FromSoftware owner Kadokawa confirmed Sony Group’s buyout intent on November 20, setting both the entertainment industry and stock market abuzz. Although no decisions have been announced so far, opinions on the potential buyout have been divided.
Talking to Bunshun, economic analyst Takahiro Suzuki offered the opinion that while Sony’s entertainment sector would greatly benefit from gaining access to Kadokawa’s IPs, the latter would have little to gain from the deal.
“Kadokawa will lose its independence, and management will become stricter. If they want to keep developing their business as freely as they have until now, [the acquisition] would be a bad choice. They’d have to be prepared for publications that don’t lead to IP creation being put under scrutiny.”
It seems that Natsuno’s sluggish response during this crisis has caused significant dissatisfaction among Kadokawa’s employees, to the point of his potential dismissal fueling positive sentiment towards Sony’s acquisition.
Meanwhile, former chairman Tsuguhiko Kadokawa, who belongs to Kadokawa’s founding family, was “surprised, but appeared positive” about the acquisition, according to an insider interviewed by Bunshun. Kadokawa recently resigned from his position after being indicted in an Olympic bribery case, which no doubt also shook up the company’s administration.
The outcome of Sony and Kadokawa’s M&A negotiations remains to be seen, although some experts say that Sony could potentially back out if the deal proved too expensive.
12-19-24 | 07:30 AM
#8
Thread Starter
Anime Talk Contributor / Moderator
Re: Sony in talks to acquire Kadokawa
KADOKAWA and Sony Agree to Form Strategic Capital and Business Alliance https://www.sony.com/en/SonyInfo/New...2412/24-1219E/
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http://4NN.cx/.219255
Sony Becomes Largest Shareholder in Kadokawa in January
Company to hold nearly 10% of shares after buying 12 million new shares for about 50 billion yen
Sony and Kadokawa announced on Thursday that the two companies are forming a "strategic capital and business alliance" that will see Sony becoming Kadokawa's largest shareholder, holding approximately 10% of its shares, as of January 7. Sony will acquire 12,054,100 new Kadokawa shares for 49,976,298,600 yen (about US$318 million). Sony's holding of 10% of Kadokawa's shares includes shares Sony previously purchased in February 2021.
Sony's announcement states the two companies will discuss specific collaborative initiatives, including "initiatives to adapt KADOKAWA's IP into live-action films and TV dramas globally, co-produce anime works, expand global distribution of KADOKAWA's anime works through the Sony Group, further expand publishing of KADOKAWA's games, and develop human resources to promote and expand virtual production."
Kadokawa additionally stated the alliance will provide "further expansion of the scope of [Kadokawa's] game publishing" and "distribution of [Kadokawa's] publications, including manga, as e-books by the Sony Group."
Kadokawa stated it plans to use 20 billion yen from January 2025 to March 2030 for "creating, developing, and acquiring new IP." The company plans to use the other 29.7 billion yen from January 2025 to March 2030 on "enhancement of global IP distribution."
Currently, Kadokawa holds 129,000 shares of common stock in Sony, and Sony holds 2,844,950 shares of common stock in Kadokawa (which is 2.01% of shares).
After the change, Korea Security Depository - Samsung and The Master Trust Bank of Japan, Ltd. will technically hold more percentage of shares than Sony, however Kadokawa added that both are "trust business operators holding the shares as trust property, and so it has been determined that they do not constitute major shareholders or the largest major shareholder."
The breakdown of shareholders in Kadokawa after January 7 as follows:
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http://4NN.cx/.219255
Sony Becomes Largest Shareholder in Kadokawa in January
Company to hold nearly 10% of shares after buying 12 million new shares for about 50 billion yen
Sony and Kadokawa announced on Thursday that the two companies are forming a "strategic capital and business alliance" that will see Sony becoming Kadokawa's largest shareholder, holding approximately 10% of its shares, as of January 7. Sony will acquire 12,054,100 new Kadokawa shares for 49,976,298,600 yen (about US$318 million). Sony's holding of 10% of Kadokawa's shares includes shares Sony previously purchased in February 2021.
Sony's announcement states the two companies will discuss specific collaborative initiatives, including "initiatives to adapt KADOKAWA's IP into live-action films and TV dramas globally, co-produce anime works, expand global distribution of KADOKAWA's anime works through the Sony Group, further expand publishing of KADOKAWA's games, and develop human resources to promote and expand virtual production."
Kadokawa additionally stated the alliance will provide "further expansion of the scope of [Kadokawa's] game publishing" and "distribution of [Kadokawa's] publications, including manga, as e-books by the Sony Group."
Kadokawa stated it plans to use 20 billion yen from January 2025 to March 2030 for "creating, developing, and acquiring new IP." The company plans to use the other 29.7 billion yen from January 2025 to March 2030 on "enhancement of global IP distribution."
Currently, Kadokawa holds 129,000 shares of common stock in Sony, and Sony holds 2,844,950 shares of common stock in Kadokawa (which is 2.01% of shares).
After the change, Korea Security Depository - Samsung and The Master Trust Bank of Japan, Ltd. will technically hold more percentage of shares than Sony, however Kadokawa added that both are "trust business operators holding the shares as trust property, and so it has been determined that they do not constitute major shareholders or the largest major shareholder."
The breakdown of shareholders in Kadokawa after January 7 as follows:
- Korea Security Depository - Samsung: 10.01%
- The Master Trust Bank of Japan, Ltd.: 9.76%
- Sony Group Corporation: 9.68%
- Goldman Sachs International: 7.33%
- Custody Bank of Japan, Ltd.: 5.58%
- Nobuo Kawakami: 4.41%
- Nippon Telegraph and Telephone Corporation: 2.65%
- Nippon Life Insurance Company: 2.23%
- State Street Bank and Trust Company 505001: 2.13%
- Bandai Namco Holdings Inc.: 1.99%
- CyberAgent, Inc. 1.85%
