Sony to Acquire Kadokawa: Employees Excited

Sony has officially expressed its intent to acquire the Japanese conglomerate Kadokawa, sparking a wave of optimism among its employees despite concerns about potential loss of independence. Dive deeper to understand the reasons behind their enthusiasm!

Sony And Kadokawa Still In Talks

More Beneficial For Sony Than Kadokawa, Says Analyst

Sony has confirmed its interest in purchasing Kadokawa, a prominent Japanese publishing conglomerate. While negotiations are ongoing and no final decisions have been disclosed, the proposed acquisition has elicited varied responses from industry observers.

Economic analyst Takahiro Suzuki, speaking to Weekly Bunshun, suggested that the deal favors Sony more than Kadokawa. As Sony shifts its focus from electronics to entertainment, the acquisition of Kadokawa would enable Sony to "incorporate Kadokawa’s content and strengthen it." Kadokawa boasts an impressive portfolio of intellectual properties (IPs), including popular anime titles like Oshi no Ko and Dungeon Meshi (Delicious in Dungeon), as well as the acclaimed game Elden Ring by FromSoftware.

However, this move could compromise Kadokawa's autonomy. As reported by Automaton West, "Kadokawa will lose its independence, and management will become stricter. If they want to continue developing their business with the same freedom they've enjoyed, this acquisition might not be the best choice. They would need to brace for increased scrutiny on publications that don't contribute to IP creation."

Kadokawa Employees Reportedly Optimistic On Acquisition

Despite the potential downsides for Kadokawa, its employees seem to be embracing the prospect of being acquired by Sony. Interviews conducted by Weekly Bunshun revealed a generally positive sentiment among the staff, with many expressing no objections to the acquisition and even asking, "Why not Sony?"

This positive outlook can be attributed to dissatisfaction with the current leadership under President Takeshi Natsuno. A seasoned Kadokawa employee told Weekly Bunshun, "The people around me are thrilled at the prospect of an acquisition by Sony. There's a significant number of employees who are unhappy with the Natsuno administration, especially after the cyberattack incident where personal data was leaked and no press conference was held. They hope that Sony’s acquisition would lead to a change in leadership."

In June of this year, Kadokawa suffered a ransomware attack by the hacker group BlackSuit, resulting in the theft of over 1.5 terabytes of data, including internal legal documents, user information, and employee personal details. The perceived mishandling of this crisis by President Natsuno has fueled employee discontent, further explaining their enthusiasm for a potential acquisition by Sony.