Sony Group Corporation is in talks to acquire fellow Japanese conglomerate Kadokawa, according to media reports that emerged this week. The firm's animation and games properties may underlie the possible M&A activity.

Kadokawa's shares closed up 16% in Tokyo on Wednesday, a day after Reuters reported Sony was in talks to acquire the publishing, anime and gaming powerhouse. Shares in Kadokawa, which controls "Elden Ring" developer FromSoftware,

Sony is reportedly in talks to buy Kadokawa, whose subsidiary FromSoftware is behind smash hit Elden Ring, the Dark Souls and Armored Core games, and PlayStation exclusive Bloodborne.