Shares of Sony Group Corporation have reached a record high amid rumors of the company’s plans to acquire Kadokawa and FromSoftware
Industry sources have reported that Sony Group Corporation shares have reached a record high after the company’s plans to acquire Kadokawa and expand its gaming and entertainment divisions came to light. As seen in the image below, the company’s previous record high stock price was back in the year 2000.
Sony’s stock wrapped up Tuesday’s trading session with a 4.1% gain, closing at 3,338 Yen and surpassing the previous record set during 2000. The recent surge in the company’s stock price follows the announcement of strong quarterly results for the period ending in September, which were bolstered by significant profit growth in its gaming division.
On the same day, Macquarie revised its operating profit forecast for Sony’s next fiscal year, beginning in April, citing expected higher earnings from game titles developed by Sony’s in-house studios as a key factor.
In recent years, Sony has poured billions into strengthening its content creation capabilities across its entertainment divisions. These segments, comprising gaming, music, and film, now generate nearly 60% of the company’s total revenue, up from around 30% a decade ago. Just last month, the company attributed a 69% year-on-year increase in quarterly net profit to its gaming segment, where operating profit more than doubled due to strong sales of software and network services, as well as improved profitability from hardware sales.
Sony Group Corporation has raised its revenue forecast for the fiscal year ending in March 2025, expecting continued growth in its gaming business. This is likely in part due to the company’s plans to acquire FromSoftware parent company Kadokawa. The media company recently issued a notice (via) in response to a media report that had claimed Sony had been in talks to acquire it. At the time, Kadokawa confirmed Sony’s intent to acquire its shares, but it also stated that it had not made a decision in this regard at the time.
