Recently, news about a takeover of the “Kadokawa Corporation” by Sony has made the rounds. However, the deal is unfolding differently than expected. The stock market is already reacting.
This was the situation: In November, Reuters reported that Sony was in talks with the Kadokawa Corporation. This Japanese company holds shares in many other companies and is, among others, engaged with 69.99% in FromSoftware – the creators of Elden Ring and other Souls games. It also holds shares in many other companies involved in books, films, anime, and video games.
At that time, a possible purchase of the company by Sony was discussed. The stock market reacted promptly: the market value of Kadokawa’s stock rose to an all-time high.
However, today it looks quite different.
Deal between Kadokawa and Sony unfolds differently than expected – stock reacts
This is the deal now: Sony announced in a press release on Thursday that it would invest 50 billion yen (approximately 307 million euros) in Kadokawa. This would increase Sony’s stake to 10% and make it the largest shareholder of the company. However, it is not an acquisition.
Through the deal, both parties aim to work more closely together to enhance the value of both companies’ IPs globally and to make joint investments in content, find new creators, and bring the IPs together. Among other things, Sony mentioned that they would like to discuss the possibility of adapting Kadokawa’s IPs into films or TV dramas in the future.
What is happening with the stock? On the stock market, Kadokawa’s stock has initially fallen after rising to its all-time high of 4,505 yen around the purchase rumors. After this peak, the stock value had already been declining moderately, but following the announcement of the new deal, there was a more noticeable drop. While the stock was at 4,389 yen on Thursday, it has now been listed at 3,689 yen. Before the rise around the purchase rumors, the stock value was at 3,045 yen.
It remains to be seen how the value will develop further – just as it remains to be seen what the deal between Kadokawa and Sony will ultimately result in. For now, one can only speculate. Many players hope for a series or a movie about Elden Ring – perhaps that would be interesting? At least George R.R. Martin has already commented on the subject.
