- Kadokawa just confirmed Sony’s interest in acquiring the company.
- This has caused a significant increase in Kadokawa’s stock price, surging 18.69% to 4,445 yen per share.
- On the other hand, Bandai Namco’s stock price fell due to concerns about the potential impact on their partnership with FromSoftware.
FromSoftware’s parent company Kadokawa recently confirmed Sony’s interest in acquiring the company. This has caused the company’s stock to rise sharply, showing investors’ excitement about the possibility.
On the other hand, Bandai Namco, which has partnered with FromSoftware on Elden Ring, saw its stock drop due to worries about what the potential deal could mean.
Why it matters: The official confirmation from Kadokawa adds more fuel to the situation, leading to expectations of a further rise in the company’s stocks.
Earlier reports indicate that Sony is in advanced talks to buy Kadokawa Corporation, which owns FromSoftware, and other companies like Spike Chunsoft. FromSoftware has worked closely with Sony for years and has a good relationship with them.
If the deal goes through, it would boost Sony’s game library and likely make future FromSoftware games PlayStation exclusives.
The market quickly responded to the news, with Kadokawa’s stock price jumping 18.69% to 4,445 yen per share—an increase of 700 yen from the day before.
In contrast, Bandai Namco’s stock fell after the news. The company has long worked with FromSoftware to publish its popular games.
A potential Sony acquisition could disrupt this partnership, possibly limiting Bandai Namco’s involvement with future FromSoftware titles. This uncertainty has made investors concerned about Bandai Namco’s growth.
If Sony acquires Kadokawa, it would strengthen its control over Japanese game studios and their IPs. However, this could also lead to a potential monopoly, especially considering Sony’s past criticism of Microsoft’s acquisition moves.
The potential acquisition is also a setback for cross-platform gamers, as it could make future FromSoftware games exclusive to PlayStation. Titles like Elden Ring, which were huge hits on all platforms, might not have the same reach going forward.
Regardless, Kadokawa hasn’t made a final decision yet. This suggests the negotiation could take some time, giving the company a chance to consider its options and work with stakeholders to decide the best path forward.
What do you think of the possibility of Sony acquiring Kadokawa and FromSoftware? Let us know in the comments below or join the conversation on Tech4Gamers Forum.
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