Kadokawa, the group behind FromSoftware and the Elden Ring franchise, is facing significant opposition from its shareholders. The activist fund Oasis Management, one of Japan’s most active, has become its largest shareholder with a 13.76% stake and has called for the removal of CEO Takeshi Natsuno at the annual general meeting.
Oasis criticizes management for a sharp decline in profitability since 2021, despite the immense commercial success of Elden Ring. In particular, the fund believes that Kadokawa is not deriving sufficient profit from its flagship licenses and criticizes certain international publishing agreements, which it deems unfavorable to the group.
The challenge gained credibility thanks to the support of two influential shareholder advisory firms, ISS and Glass Lewis, which recommended voting against the CEO’s reappointment.
Beyond its financial results, Kadokawa has also been weakened in recent years by a major cyberattack, criticism of its management practices, and several legal controversies involving former executives.
This battle is seen as an important test for corporate governance at major Japanese companies, at a time when activist investors are gaining increasing influence in Japan.
