Sony has submitted a letter of intent to acquire Japanese media conglomerate Kadokawa and all of its subsidiaries.

Reuters reported on Sony’s move yesterday, with sources saying that talks between the two parties are ongoing and a deal could be reached in the coming weeks. Kadokawa has since acknowledged receiving Sony’s LOI to purchase its shares, but hasn’t yet made a decision on selling. 

Kadokawa owns and operates more than 30 subsidiaries in the manga, anime and games industries that would fit into Sony’s expansion of its content offerings on PlayStation and Crunchyroll. These studios include Kadokawa Future Publishing (manga and light novels), Yen Press (localized manga), FromSoftware (video games), Doga Kobo (anime production) and BookWalker (e-commerce platform). 

Kadokawa also holds the rights to several anime brands that Sony could leverage into new content and consumer products, including Sword Art Online, Overlord, Delicious in Dungeon, Re:Zero and Oshi no Ko—which Kadokawa initially published as manga or light novels before giving them an anime adaptation. 

Sony currently owns a 2% stake in Kadokawa, which was valued at US$2.4 billion on Tuesday. Sony also holds 14% of the shares in the FromSoftware studio, which it has collaborated with in the past to develop the PlayStation 4 exclusive title Bloodborne (2015).