Kadokawa, the parent company of FromSoftware, has acknowledged interest from Sony in a potential acquisition

Kadokawa, the parent company of FromSoftware and Spike Chunsoft, has revealed that Sony has sent a proposal to purchase its shares. However, Kadokawa clarified that "no decision has been made at this time."

This announcement, signed by CEO Takeshi Natsuno, appeared on the company's website. It follows a Reuters report earlier this week that negotiations were ongoing between Sony and Kadokawa for an acquisition.

The statement noted, "There are publications regarding Sony Group Inc's potential acquisition of Kadokawa Corporation, but this information has not been officially released by our company. We have received an initial proposal to acquire our shares, but a decision remains pending. Any significant updates will be disclosed in a timely and appropriate manner."

According to a recent article by Reuters, discussions about the acquisition are in progress, as confirmed by two anonymous sources. Following the news, Kadokawa's stock experienced a surge, hitting a record high.

Besides owning FromSoftware and Spike Chunsoft, Kadokawa also includes Octopath Traveler co-developer Acquire and RPG Maker creator Gotcha Gotcha Games among its subsidiaries.

Currently, Sony holds about 14% of FromSoftware, with Kadokawa possessing 70% and Tencent holding a 16.5% stake.