Kadokawa confirms in a statement that it has received a letter with a purchase inquiry, but that no decision has been made yet.
Kadokawa owns the majority of From Software, which has developed the best-selling and critically acclaimed "Elden Ring", but is also a major publisher of manga and anime.
There is no doubt that Sony wants to get its hands on From Software, which has been the crown jewel of the publisher. It's a quality studio that I've long thought should be acquired, says market strategist Amir Anvarzadeh at Asymmetric Advisors to Bloomberg.
Kadokawa's share has soared on the acquisition rumors and is up nearly 50 percent since the start of the trading week.
Sony and Microsoft have both bought several major developers in recent years to strengthen their game portfolios. Sony bought American Bungie in 2022, which is behind the "Destiny" series, while Microsoft completed the acquisition of "Call of Duty" and "Warcraft" creators Activision Blizzard last year.
Sony has not commented on the acquisition rumors.
