FromSoftware parent Kadokawa confirms buyout interest from Sony

FromSoftware and Spike Chunsoft's parent company Kadokawa has confirmed that Sony has issued a letter of intent to acquire the firm's shares, but clarified that "no decision has been made at this time."

The statement was posted on the firm's website and is signed by CEO Takeshi Natsuno, following a Reuters report earlier this week that Sony was in talks to acquire Kadokawa.

"There are some articles on the acquisition of Kadokawa Corporation (hereinafter 'the Company') by Sony Group Inc," the statement read. "However, this information is not announced by the company. The company has received an initial letter of intent to acquire the company's shares, but no decision has been made at this time. If there are any facts that should be announced in the future, we will make an announcement in a timely and appropriate manner."

Reuters reported yesterday that acquisition talks were ongoing between the two firms, according to two anonymous sources the publication talked to. Following the story, Kadokawa's shares soared, reaching an all time high.

In addition to FromSoftware and Spike Chunsoft, Kadokawa also owns Octopath Traveler co-developer Acquire and RPG Maker firm Gotcha Gotcha Games.

Sony already owns around 14% of FromSoftware, which is owned by Kadokawa at 70% and by Tencent at 16.5%.