Sony Getting Closer to Controlling Anime

On November 20, Kadokawa Corporation, one of Japan's leading publishers and owner of renowned video game developer FromSoftware, confirmed Sony Group's intention to acquire the company. This announcement has provoked 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 an intense debate about the potential benefits and risks of this acquisition.

Benefits and concerns: what analysts say

Economist Takahiro Suzuki, speaking to Japanese media outlet Bunshun, stressed that Sony could benefit greatly from acquiring Kadokawa's intellectual properties (IPs), especially considering the strength of its entertainment sector. However, he also warned about the potential downsides for Kadokawa. "Kadokawa would lose its independence and its management would be stricter. If they want to continue developing their business with the freedom they have had so far, this acquisition would be a bad choice. Posts that don't generate IPs could come under scrutiny," Suzuki said.

This concern about the loss of independence is also reflected in public opinion, with many questioning how this deal might 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 prospect 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 prospect of Sony acquiring the company because of their dissatisfaction with the current management under the leadership of chairman 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," the employee said.

The aforementioned cyberattack was carried out earlier this year by a hacker group known as BlackSuit, who infiltrated Kadokawa's services, including NicoNico, one of Japan's most popular streaming platforms. The 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 ouster into a reason to support Sony's takeover.

Recent Changes and the Future of Kadokawa

Kadokawa's administration has also faced other challenges in recent months. Tsuguhiko Kadokawa, the company's former chairman and a 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 anime, video game and publishing landscape in Japan and globally.

Source: Automaton Media