Sony considers buying Japan publisher Kadokawa in entertainment push

Sony Group Corp is considering acquiring Japanese publisher Kadokawa Corp, as the tech conglomerate seeks to strengthen its entertainment business, sources familiar with the matter said Tuesday.

Under the planned deal, Sony hopes to leverage Kadokawa's expertise in the anime and gaming businesses, the sources said. While the talks are still in the early stages, the two companies could reach an agreement in the coming weeks.

Kadokawa is one of the leading players in the Japanese entertainment industry, holding many smash-hit titles in animation and games.

Its animation portfolio includes "Bungo Stray Dogs" and "Oshi No Ko," while its gaming subsidiary FromSoftware Inc. boasts the hugely popular action role-playing game "Elden Ring."

Sony, which started off as an electronics maker, has transformed itself into an entertainment giant over the years, with its music, game, and movie operations driving its growth.

The maker of PlayStation consoles has also been ramping up its animation operations in recent years.

The Japanese conglomerate, which owns animation firm Aniplex Inc, bought in 2021 U.S.-based animation distributor Crunchyroll LLC. It was also reportedly considering acquiring U.S. media giant Paramount Global but gave up on the plan earlier this year.

Sony owned about 2 percent of Kadokawa as of the end of March, according to Kadokawa's filing.

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