Kadokawa's shares have experienced a remarkable surge, jumping 19% in early Tokyo trading on November 20, 2024, following reports that Sony is in discussions to acquire the prominent publishing, anime, and gaming company. This follows a 23% increase in Kadokawa's stock on November 19, reaching the daily limit after the news broke. The potential acquisition is seen as a strategic move for Sony, which aims to bolster its entertainment portfolio that already includes games, movies, music, and anime.

Industry experts believe that the acquisition would significantly enhance Sony's position in the rapidly growing anime market, projected to double to $60 billion by 2030. Serkan Toto, founder of Kantan Games, emphasized the importance of this move, stating, "Anime and manga are conquering the world and Sony knows this. They need firepower if they want to be a big player in these markets, so they went for Kadokawa."

Kadokawa is known for its ownership of FromSoftware, the developer behind the critically acclaimed game "Elden Ring," which has sold over 25 million units worldwide. The acquisition would not only give Sony control over FromSoftware but also strengthen its existing relationships with other Kadokawa subsidiaries, including Aniplex, known for high-quality anime series like "Demon Slayer."

Analysts have noted that adding Kadokawa's anime planning and production capabilities would enhance Aniplex's offerings, further solidifying Sony's foothold in the entertainment industry. The ongoing talks are expected to conclude in the coming weeks, with no official agreement yet reached. As the market reacts to these developments, Kadokawa's stock continues to rise, reflecting investor optimism about the potential deal.