Sony Eyes Kadokawa Acquisition: Implications for Gaming and Anime Markets
In this episode, Richard Hoeg dives into the potential acquisition of Kadokawa by Sony, examining the pricing process regulatory questions and more. Richard explores Sony's stake in Kadokawa, the company's anime involvement, and potential antitrust issues. He provides insights into Sony's acquisition history and financials, the implications of leaked information, and the role of cash in acquisitions. The episode also touches on Tencent's influence, anime market monopolization worries, and jurisdictional challenges for international companies, concluding with thoughts on regulatory concerns and FromSoft's potential independence.
Key Points
- Sony's potential acquisition of Kadokawa, the company behind Elden Ring, could significantly impact the gaming and anime industries, raising concerns about market consolidation and exclusivity.
- The financial feasibility of the acquisition for Sony is in question, given their available cash reserves and the potential need for a premium payment to secure the deal.
- Regulatory bodies, like the FTC and CMA, may scrutinize the deal to ensure it doesn't stifle competition, though the likelihood of intervention in the anime market appears low.
LINKS
INITIAL REPORTS https://www.reuters.com/markets/deals/sony-talks-buy-media-powerhouse-behind-elden-ring-sources-say-2024-11-19/ https://www.videogameschronicle.com/news/sony-is-reportedly-in-talks-to-acquire-fromsoftware-owner-kadokawa/
LOI https://ssl4.eir-parts.net/doc/9468/ir_material7/240956/00.pdf https://www.acc.com/sites/default/files/resources/vl/membersonly/SampleFormPolicy/1386759_1.pdf
PRICE https://companiesmarketcap.com/kadokawa/marketcap/ https://www.macrotrends.net/stocks/charts/SONY/sony/cash-on-hand https://firstpagesage.com/business/valuation-ebitda-multiples-for-tech-companies/ https://pitchbook.com/profiles/company/65345-59#stock https://finance.yahoo.com/quote/9468.T/key-statistics/ https://www.macrotrends.net/stocks/charts/MSFT/microsoft/cash-on-hand https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/ https://stockanalysis.com/stocks/atvi/financials/ratios/
TENCENT AND FROMSOFTWARE https://en.wikipedia.org/wiki/Kadokawa_Corporation https://en.wikipedia.org/wiki/FromSoftware
ANIME AND REGULATORS https://comicbook.com/anime/news/sony-kadokawa-anime-monopoly/ https://www.ftc.gov/system/files/ftc_gov/pdf/2023_merger_guidelines_final_12.18.2023.pdf
Chapters
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Transcript
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