Sony is in talks to acquire Kadokawa, the media powerhouse behind the Elden Ring game, two sources familiar with the matter said, as the technology giant looks to add to its entertainment portfolio.

The talks between the two sides are ongoing and, if successful, a deal could be signed in the coming weeks, the sources said.

Kadokawa's shares closed up 23% at their daily limit. Its market capitalization was around $2.7 billion prior to the report.