NEW YORK/TOKYO — Sony is in talks to acquire Kadokawa, the Japanese media powerhouse behind the Elden Ring game, two sources familiar with the matter said, as the technology giant looks to add to its entertainment portfolio.

The talks between the two sides are ongoing and, if successful, a deal could be signed in the coming weeks, the sources said.

Kadokawa's shares closed up 23 per cent at their daily limit. Its market capitalisation was around US$2.7 billion (S$3.6 billion) prior to the Reuters report.

Sony declined to comment. Kadokawa said it cannot comment.

Sony already has a two per cent stake in Kadokawa and FromSoftware, the developer of the hit fantasy role-playing game.

The critically acclaimed title is a collaboration between veteran game director Hidetaka Miyazaki and Game of Thrones author George R.R. Martin.

The game has sold 25 million units, with an expansion, Shadow of the Erdtree, selling five million units in the three days after its release in June.

Kadokawa began as a publisher in 1945, but has expanded franchises such as Re:Zero into games, anime, events and figures.

Related

---