Sony in Talks to Buy Japan Anime Firm Kadokawa, Reuters Says

Japanese media and entertainment giant Sony Group Corp is in talks to acquire Kadokawa Corp

Sony is in exclusive talks to acquire Kadokawa Corp, a Japanese media and entertainment company, for about 1.7 trillion yen ($14 billion), said people with knowledge of the matter.

Merging with Kadokawa would boost Sony's ability to compete with global entertainment giants such as Walt Disney Co and Netflix Inc. The deal would give Sony more access to popular anime and video game titles.

Kadokawa has a valuable library of anime and video game titles

Kadokawa is one of Japan's largest publishers of manga, anime, and light novels. It also has a profitable video game business.

Some of Kadokawa's most popular anime titles include "Demon Slayer: Kimetsu no Yaiba," "Re:Zero − Starting Life in Another World," and "Sword Art Online."

Kadokawa's video game business is also strong. The company has developed and published popular titles such as "NieR: Automata" and "Code Vein."

The deal would give Sony a stronger foothold in the global entertainment market

Sony is already a major player in the global entertainment market. The company owns the PlayStation video game console, the Sony Pictures movie studio, and the Sony Music Entertainment record label.

Acquiring Kadokawa would give Sony a stronger foothold in the anime and video game markets. This would allow Sony to better compete with global rivals such as Disney and Netflix.

The deal is expected to close in the first half of 2023.