Sony buyout wouldn't benefit Kadokawa Corp, Japanese analyst says

Sony has confirmed its intent to buy manga and anime multimedia giant Kadokawa Corp., but one Japanese analyst warns against the effects of this multimedia consolidation.

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Sony could purchase Kadokawa in a sweeping merger that would combine Sony's existing movies, games, TV, film and music businesses with Kadokawa's billion-dollar manga and anime empire. PwC analyst Suzuki Takahiro believes Sony's motivations are centered around acquiring Kadokawa's formidable trove of IPs.

"Sony is no longer the consumer electronics manufacturer it was in the past, and entertainment is becoming its core business. However, creating IP (intellectual property) is not its forte. I think they are aiming to incorporate Kadokawa's content and strengthen it," Takahiro told Yahoo News Japan.

The PwC analyst goes on to say that such a takeover may not be the best choice for Kadokawa, a firm whose entire business is built upon the highly variable creative arts. Under Sony, Takahiro argues, Kadokawa will have less freedom and also be subject to the other undesirable effects of consolidation.

"They will lose their independence, and management will become stricter. If they want to develop their business freely as they have in the past, this is not a desirable choice. With the publishing industry in a slump, they must be prepared to cut back on publications that do not lead to IP creation."

Sources tell Yahoo News that employees are mostly optimistic about the buyout.

"The other employees are happy about Sony's acquisition. That's because there is a certain number of employees who are dissatisfied with the Natsuno administration," one source said.

"They are hoping that if Sony acquires the company, the first thing they will do is fire President Natsuno."