NEW YORK/TOKYO (Reuters) -Sony ( SONY ) is in talks to acquire Kadokawa ( KDKWF ), the Japanese 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.

Sony ( SONY ) declined to comment. Kadokawa ( KDKWF ) said it cannot comment.

As of 0608 GMT, Kadokawa's ( KDKWF ) shares were bid-only at the daily limit of 3,745 yen.

Sony ( SONY ) already has a 2% stake in Kadokawa ( KDKWF ) and a stake in Kadokawa ( KDKWF ) subsidiary FromSoftware, the developer of the hit fantasy role-playing game.

The fantasy title is a collaboration between veteran game director Hidetaka Miyazaki and "Game of Thrones" author George R.R. Martin.

Kadokawa ( KDKWF ) began as a publisher in 1945, but has expanded franchises such as "Re:Zero" into games, anime, events and figures. Its market capitalisation was around $2.7 billion prior to the Reuters report.

Known as the inventor of the Walkman, Sony ( SONY ) has transformed from an electronics manufacturer into an entertainment and technology juggernaut spanning movies, music, games and chips.

"Loveable characters and intellectual property (IP) can live for 30, 50 or 100 years," Sony ( SONY ) CEO Kenichiro Yoshida said last year.

"That's something we want to make investment in for sustainable growth," he said.

Anime is a focus for Sony ( SONY ), with its growth worldwide fueled by the spread of streaming services and greater familiarity with Japanese culture.

Sony ( SONY ), which has a market valuation of around $114 billion, in January scrapped the $10 billion merger of its Indian arm with Zee Entertainment Enterprises.