On November 20, Kadokawa Corporationa major Japanese publisher and owner of renowned video game developer FromSoftware, confirmed Sony Group's intention to acquire the company. This announcement has caused a wave of reactions in both the entertainment industry and the financial markets. Although a final decision has not yet been made, the news has generated intense debate about the possible benefits and risks of this acquisition.
Advantages and concerns: the opinion of analysts
Economist Takahiro Suzuki, speaking to the Japanese media Bunshun, highlighted that Sony could benefit greatly from acquiring Kadokawa's intellectual properties (IPs), especially considering the strength of its entertainment sector. However, he also warned of potential downsides for Kadokawa. «Kadokawa would lose its independence and its management would be stricter. If they wish to continue developing their business with the freedom they have had until now, this acquisition would be a poor choice. Posts that do not generate IPs could come under scrutiny», declared Suzuki.
This concern over the loss of independence is also reflected in public opinion, with many questioning how this deal could affect Kadokawa's ability to operate as an independent publisher.
Kadokawa employees: divided opinions
Inside Kadokawa, reactions have been mixed. Previous reports indicated that the possibility of Sony and Kadokawa's anime production frameworks merging generated excitement, especially at the prospect of creating a global giant in the anime industry. However, new testimonies collected by Bunshun reveal a different perspective.
A veteran Kadokawa employee said some workers are excited about the possibility of Sony acquiring the company because of their dissatisfaction with the current management under the leadership of president and CEO Takeshi Natsuno. «Many expect Sony to remove the president, especially after no clear action was taken following the leak of personal information in the cyberattack», stated the employee.
The aforementioned cyberattack was carried out earlier this year by a hacking group known as BlackSuit, who infiltrated Kadokawa services, including NicoNico, one of the most popular streaming platforms in Japan. Hackers stole 1.5 terabytes of data, which included personal information of users and employees. Natsuno's slow response during this crisis has fueled dissatisfaction among employees, turning his potential dismissal into a reason to support Sony's acquisition.
Recent changes and the future of Kadokawa
Kadokawa's administration has also faced other challenges in recent months. Tsuguhiko Kadokawa, the company's former president and member of the founding family, recently resigned after being charged in a bribery case related to the Tokyo Olympics. According to close sources cited by Bunshun, Tsuguhiko was surprised but optimistic about the possibility of Sony acquiring the company.
The outcome of the negotiations between Sony and Kadokawa is still uncertain. Some analysts suggest Sony could pull out if the cost of the acquisition turns out to be too high. However, the possibility of a merger between two entertainment giants has already generated great excitement in the industry and could redefine the landscape of anime, video games and publishing in Japan and globally.
Fountain: Automaton Media
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