Panajev2001a
GAF's Pleasant Genius
Last edited:
-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
Mibu no ookami
Banned
He's going to come back with these not being conglomerates, but the sample size is obviously super small in reality.
Sony has as good a track record as anyone in the industry in buying studios and advancing them to higher tiers.
Nixxes - Look at what Nixxes has done since Sony bought them compared to their entire history before. 8 games since they started working with Sony. 8 games since 2021 and it is only increasing. Sony is probably publishing more unique AAA games on PC than anyone else (i.e. not annual release titles).
They're also highly successful with their internally built studios.
So weird the hate this company gets.
Panajev2001a
GAF's Pleasant Genius
They did not restrict to conglomerate buying a conglomerate, they said game studios and/or conglomerates being acquired by other studios or conglomerates
.
Last edited:
Indeed. For some odd reason, I thought these companies were always part of Sony. I guess it's a testament to how smoothly they integrated them. Maybe it's a good omen for From Software. They did work on Demon's Souls and Bloodborne with Sony, so it should be a good signThey did not restrict to conglomerate buying a conglomerate, they said game studios and/or conglomerates being acquired by other studios or conglomerates
thicc_girls_are_teh_best
Member
Nothing to point out specifically here, just funny to see fiendcode get their shit pushed in on the Sony/Kadokawa stuff. Their thinly-veiled concern trolling's getting called out and highlighted for the stupidity it is. In their fearmongering using Japan Studio, they omitted Polyphony Digital and Team Asobi, and several people already exposed them for this.
Another of fiendcode's "great" posts...
Here's fiendcode shitting on Demon's Souls Remake's sales numbers by saying RedFall likely sold more copies.
Yes, that RedFall. The same RedFall that killed Arkane Austin. And from the ABK acquisition thread, I remember them making some super sus posts in support of that deal, but suddenly they're choking up to push against a possible Sony x Kadokawa deal.
-
Last edited:
ToadMan
Member
Sony seems to take an approach of working together and integrating first, before making a purchase or acquisition move.
Compare and contrast to those other companies where the finances are worked out first, the deal is done, and then everyone tries to work out how all the parts are supposed to fit together. Often this fails - as in those examples you found. MS - ABK was a good example of a deal that fell into MS lap first and now they're trying to work how to make it all fit into a strategy.
I know it's a joke about "organic" growth with Sony but this is, to me, what that means. The working relationship is worked out first and if that works out, the acquisition can be concluded without financial risk and both sides feel comfortable about what happens day one following the acquisition because they were already working together.
Sony has to go that way since they don't have fuck-you money. A misstep could sink their business, which is also why they're the best option for a Kadokawa acquisition - if an acquisition has to be done by anyone that is...
jataple
Neo Member
New development
Article from Yahoo Japan (published today), interview with kadokawa employees about how they feel about the possible acquisition, questions to former founder and former Director (who still owns stocks according to the article) if i am not wrong of one of the kadokawa divisions, and comments from kadokawa and sony at the end
Sony confirms they sent the letter of intent and they cant comment anymore about the topic
Article source: https://news.yahoo.co.jp/articles/7539b7b0e14d496a2780f1145474eb5a69163c16?page=1
I used two different translators as this article is in japanese, google translator and deepl translator, it changes some things so whoever speaks japanese fluently would be awesome if they can translete the most important parts
reading the article (using translators) this is my take: it seems kadokawa employees are happy about the possible acquisition, comments from former director of kadokawa, seems he cant comment on it but he will comment if they are a proper announcement, comment from former kadokawa founder, it seems happy about the possible acquisition.
new official comments:
kadokawa still cant comment beyond what is already in public knowledge and sony confirms at the end the letter of intent and they as well cant comment beyond what is already known in public.
interesting development as it seems conversations are still ongoing
Article from Yahoo Japan (published today), interview with kadokawa employees about how they feel about the possible acquisition, questions to former founder and former Director (who still owns stocks according to the article) if i am not wrong of one of the kadokawa divisions, and comments from kadokawa and sony at the end
Sony confirms they sent the letter of intent and they cant comment anymore about the topic
Article source: https://news.yahoo.co.jp/articles/7539b7b0e14d496a2780f1145474eb5a69163c16?page=1
I used two different translators as this article is in japanese, google translator and deepl translator, it changes some things so whoever speaks japanese fluently would be awesome if they can translete the most important parts
reading the article (using translators) this is my take: it seems kadokawa employees are happy about the possible acquisition, comments from former director of kadokawa, seems he cant comment on it but he will comment if they are a proper announcement, comment from former kadokawa founder, it seems happy about the possible acquisition.
new official comments:
kadokawa still cant comment beyond what is already in public knowledge and sony confirms at the end the letter of intent and they as well cant comment beyond what is already known in public.
interesting development as it seems conversations are still ongoing
Last edited:
nial
Member
Mibu no ookami
Banned
Not really a development. It was clear the employees favored the deal. It gives them scale and stability as well as ultimately new management whether directly or indirectly.
The LOI would have stated no public statements unless both sides agreed. Once it leaked, Sony would have agreed for Kadokawa to update shareholders on the LOI. Sony confirming that isn't really a development. It's simply in line with what they've agreed to say publicly.
Once due diligence is over, we'll get an update. Simple as that, but it's hard to believe a public company with this history has many hurdles for Sony. We're not going to get news ahead of that. Once Sony has completed their due diligence, they'll submit a tender offer which will need to be approved by the board and sent to shareholders. This could happen anywhere from today (it's 11am in Japan) or it could take possibly take a few more weeks, and less likely a few more months.
It's a big move for Sony, so they're not going to rush things, but you also have an exclusivity time period that can run out. So that timeline keeps everyone honest.
At the end of the day, I think this is just Sony's first step towards their goals. With how fast their stock price is rising, I'll again say I would not be surprised at a partial cash partial stock swap deal with T2. Sony is going to be above 200 billion dollars by the end of the generation. That puts them in a very ideal position to try and acquire T2.
The LOI would have stated no public statements unless both sides agreed. Once it leaked, Sony would have agreed for Kadokawa to update shareholders on the LOI. Sony confirming that isn't really a development. It's simply in line with what they've agreed to say publicly.
Once due diligence is over, we'll get an update. Simple as that, but it's hard to believe a public company with this history has many hurdles for Sony. We're not going to get news ahead of that. Once Sony has completed their due diligence, they'll submit a tender offer which will need to be approved by the board and sent to shareholders. This could happen anywhere from today (it's 11am in Japan) or it could take possibly take a few more weeks, and less likely a few more months.
It's a big move for Sony, so they're not going to rush things, but you also have an exclusivity time period that can run out. So that timeline keeps everyone honest.
At the end of the day, I think this is just Sony's first step towards their goals. With how fast their stock price is rising, I'll again say I would not be surprised at a partial cash partial stock swap deal with T2. Sony is going to be above 200 billion dollars by the end of the generation. That puts them in a very ideal position to try and acquire T2.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Very interesting.
thicc_girls_are_teh_best
Member
Damn, OhhEldenRing must be punching the air right now.
Seomel
Member
Must be easy to breeze through life with this much brainrot
Banjo64
cumsessed
Thank you. It truly is.
bitbydeath
Member
Kadokawa’s employees are reportedly optimistic about a Sony buyout because they’re itching for a change in leadership
Kadokawa’s employees are reportedly optimistic about a Sony buyout because they’re itching for a change in leadership - AUTOMATON WEST
Statements by Kadokawa employees offer a new perspective on the publisher's potential acquisition by Sony Group.
automaton-media.com
Well, it's logical, they had a massive hack in 2024, as a result of which almost 2 terabytes of data leaked, including personal data of employees, and the management simply ignored it. Plus for them it's extra money and investments, so as for the employees themselves, they are most likely happy with this opportunity, and Neogaf, as always, remains true to its tradition - we are always unhappy regardless of what happens, and this is our strengthKadokawa’s employees are reportedly optimistic about a Sony buyout because they’re itching for a change in leadership
Kadokawa’s employees are reportedly optimistic about a Sony buyout because they’re itching for a change in leadership - AUTOMATON WEST
Statements by Kadokawa employees offer a new perspective on the publisher's potential acquisition by Sony Group.
Shakka43
Member
Well, what we have seen so far with big acquisitions is that a sizeable amount of employees get laid off shortly after.Well, it's logical, they had a massive hack in 2024, as a result of which almost 2 terabytes of data leaked, including personal data of employees, and the management simply ignored it. Plus for them it's extra money and investments, so as for the employees themselves, they are most likely happy with this opportunity, and Neogaf, as always, remains true to its tradition - we are always unhappy regardless of what happens, and this is our strength
Hypereides
Member
I didn't get the impression they ignored it. Seems like they were misinformed, ill prepared and then tried to suppress the ramifications once they became aware of the issue originally.Well, it's logical, they had a massive hack in 2024, as a result of which almost 2 terabytes of data leaked, including personal data of employees, and the management simply ignored it. Plus for them it's extra money and investments, so as for the employees themselves, they are most likely happy with this opportunity, and Neogaf, as always, remains true to its tradition - we are always unhappy regardless of what happens, and this is our strength
Apparently, their internal IT team had done a hack-job maintaining the IT architecture, left some glaring holes that weren't handled or forwarded to the management. At least, that's if you choose to take BlackSuit on their word.
With Kadokawa, it's not that simple, their management wants Sony to swallow them up in their entirety, that is, including their publishing network, anime studios, manga studios, gaming divisions, distribution network, their Internet platforms for selling digital products, etc. That's why everything there won't be that simple, it's a huge company with a huge number of divisions working in different areas. Here, the focus is simply very narrowly on From Software, as if there is nothing else in Kadokawa. Well, plus, layoffs only happen in cases when the company does not show growth and profit. All the layoffs were due to poor sales, did not meet expectations, etc. I don't remember a single closure or layoff when the company showed growth. So everything will be fine with them.
Badlucktroll
Member
Sony is not interested just in From Software, the reason they're going after Kadokawa is precisely that it's an acquisition that benefits multiple businesses like games, anime, music.
So the whole corporation benefits from the acquisition and not just one of the divisions (ex. gaming) and it's easier to justify the costs internally.
It makes perfect sense for them.
I wonder if a deal will be reached before the end of this year or in January.
Last edited:
//DEVIL//
Member
"[KADOKAWA enters into business partnership with Kakao Piccoma]The latest chapters of serialized works that can be read for free are updated every day! We have jointly launched the groundbreaking digital manga magazine "MANGA Baru"Japan's largest IP creation facility"
this is a rough translation but I wonder if the deal got nuked.
from my understanding if an acquisition is happening, these things usually freeze. announcing this today doesn't sound like Sony deal is going through.
I dug a little deeper, no, this will not affect the deal in any way.
It's just a joint project, they launched an online manga store (another one...), as I understand it, Kakao wants to promote sales of Korean Manga in Japan, and Kodokawa is ideal for this.
This is a normal business collaboration, such collaborations happen all the time.
Pedro Motta
Member
It can take a very long time, up to six months. Well, if both parties are happy, it will be quick. But usually buying such a large company with such a large portfolio takes more than one month, since it is necessary to agree on all the conditions for all participants in the company chain and each department. And naturally, Kodakawa can negotiate to the last, they understand the importance of the deal for Sony. So if there is any news before next year I will be very surprised, or it will mean that Kodokawa is completely satisfied with everything.
Zacfoldor
Member
Varteras
Member
The impression I got from all of this is that Kadokawa's current company heads approached Sony on going through with a buyout after the family that was largely running it stepped down. They had been in talks for years about an acquisition before this, supposedly. It seems to me that Kadokawa has just as much, if not more, of an interest in this going through. Word is going around now that there is a general feeling of positivity in Kadokawa about the prospect of being owned by Sony. So, I doubt that Kadokawa is going to try and play too much hardball at the risk of ruining the acquisition. Especially if rumors are true that parties they don't want to be taken over by are snooping around. Sony isn't desperate. Perhaps
Mibu no ookami
can lend their mind on this.
Zacfoldor
Member
It's probably already a done deal behind the scenes if we are finding out about it in such a controlled manner. It's probably been a done deal for a while now. What we are seeing is the marketing for the deal itself. Employees are really excited for the buyout, lol, that's marketing. Seeing that is what makes me think this thing is happening for sure now.The impression I got from all of this is that Kadokawa's current company heads approached Sony on going through with a buyout after the family that was largely running it stepped down. They had been in talks for years about an acquisition before this, supposedly. It seems to me that Kadokawa has just as much, if not more, of an interest in this going through. Word is going around now that there is a general feeling of positivity in Kadokawa about the prospect of being owned by Sony. So, I doubt that Kadokawa is going to try and play too much hardball at the risk of ruining the acquisition. Especially if rumors are true that parties they don't want to be taken over by are snooping around. Sony isn't desperate. Perhaps
Last edited:
Mibu no ookami
Banned
The impression I got from all of this is that Kadokawa's current company heads approached Sony on going through with a buyout after the family that was largely running it stepped down. They had been in talks for years about an acquisition before this, supposedly. It seems to me that Kadokawa has just as much, if not more, of an interest in this going through. Word is going around now that there is a general feeling of positivity in Kadokawa about the prospect of being owned by Sony. So, I doubt that Kadokawa is going to try and play too much hardball at the risk of ruining the acquisition. Especially if rumors are true that parties they don't want to be taken over by are snooping around. Sony isn't desperate. Perhaps
I guess the only thing I would do is push for caution and patience. Caution against making any hard assumptions or overreacting to news articles that aren't really developments. Patience because we have no idea how far into discussions they are, whether they are in the due diligence phase or not.
Rumors on the internet especially can become compounded.
Sony has plans for M&A for a 3 year period that started at the beginning of this fiscal year. That doesn't mean they HAVE to spend that money, but they do intend to. This is a purchase that makes a lot of sense for both Sony and Kadokawa. I'd be surprised if it doesn't go through, but not surprised if it still takes some time, since we don't know what's going on beyond the letter of intent.
We could hear an update any day or we might not hear an update for months. Doesn't mean anything positive or negative.
We'll either here next that Sony has sent a tender offer or that they're no longer looking to acquire. I don't think Kadokawa is going to find a better acquisition partner though.
bitbydeath
Member
You might be right.
Skifi28
Member
Activision employees also were, let's see if this goes a little better.
Sanepar
Member
Who is this?
Varteras
Member
Games journalist. Shooter fan and dimsum connoisseur. EIC of
@MPFirst
, Former EIC of
@PSLifeStyle
, Formerly
@Gameranx
,
@TheEscapistMag
& more!
bitbydeath
Member
Writer for gaming site mpfirst.
Varteras
Member
Clintizzle
Lord of Edge.
It's happening, isn't it?
bitbydeath
Member
You’re probably right, didn’t realise that was from them.
bitbydeath
Member
Kadokawa is a Japanese company, Microsoft can’t do anything.
Mibu no ookami
Banned
Apples and oranges.
Microsoft accelerated plans to make ABK more focused on CoD. They're a largely mismanaged group to begin with.
Sony's pursuit of Kadokawa isn't about finding redundancies to make Kadokawa more affordable, but rather to create a multiplication effect through IP creation, production, and distribution pipelines. So it is a night and day comparison with the ABK deal where all Microsoft cares about is CoD and lowering costs.
The irony of the ABK deal is that it made CoD more profitable for Sony for a decade. Imagine that between marketing expenses and reduces royalties the CoD deal was costing Sony 100 million a year. For a decade, not having to pay those marketing costs and not having to reduce royalties, that could give Sony a billion dollars over the course of a decade...
It's like if NBC wanted to take the Office off Netflix but they agreed to keep it there for 10 years at no cost to Netflix.
Sony can use that billion dollars to reduce their reliance of CoD by either making a CoD competitor and/or focusing on games that perform well outside of CoD... like Souls games.
Sony might want to divest form non-core operations that Kadokawa has, but I doubt you will see significant layoffs as a result of this.
Astray
Member
Nah companies continue acting normally until they get the green light to merge, then they sort out the messes later.
See: Bethesda inking temp exclusive deals with Sony likely while negotiating with Microsoft.
demigod
Member
Fret Runner
Member
Still kinda funny that Sony bought EVO but doesn't have their own Fighting game exclusive. I get that it's probably more a marketing related decision that lead to that, but still.
Maybe the Sparking Zero devs could fill that void and make a new Fighting game for Playstation? just a random brainfart thought lol
Maybe the Sparking Zero devs could fill that void and make a new Fighting game for Playstation? just a random brainfart thought lol
larrybrady
Member
If/when Sony gets Kadokawa,what do you think they’ll do with the other kawa game studios, especially Acquire and spike chunsoft.. you think they’ll focus on AA games for ps5/pc, or make games mainly for Sonys future handheld(if that rumors true)..or fold them into fromsoftware making them even bigger,,or have them become support studios ?.. what’s your take on the other kadokawa game studios..