The official release, “Notice Regarding Media Articles,” was uploaded to Kadokawa’s investor relations portal Nov. 20. The full text reads:
There are some articles on the acquisition of KADOKAWA Corporation (hereinafter “the Company”) by Sony Group Inc. However, this information is not announced by the Company. The Company has received an initial letter of intent to acquire the Company’s shares, but no decision has been made at this time. If there are any facts that should be announced in the future, we will make an announcement in a timely and appropriate manner.
A letter of intent is basically the first step towards a merger or acquisition, during which the companies involved will negotiate the structure of the potential deal before moving forward. Although Kadokawa isn’t disclosing any additional information at this time, two sources in the initial Reuters story indicate that an agreement could be reached within the coming weeks.
As pointed out by Polygon’s Oli Welsh when this news first broke, Sony’s attempt at acquiring Kadokawa likely involves far more than the company’s majority stake in FromSoftware and properties like Dark Souls, Armored Core, and Elden Ring. Kadokawa is also a key figure in manga publishing. Fantasy-comedy series Delicious in Dungeon, for instance, was distributed by Kadokawa Future Publishing division Enterbrain before its anime adaptation became a breakout hit on Netflix earlier this year.
FromSoftware’s early history, for what it’s worth, was spent developing games exclusively for PlayStation consoles before the company eventually went multiplatform. The company collaborated with Sony’s now-defunct Japan Studio on 2015’s Bloodborne, a game that, for some, remains the most popular game in FromSoftware’s portfolio.