Key Takeaways:
Activist fund Oasis Management Company Ltd. has launched a campaign to oust Kadokawa Corp. (9468.T) Chief Executive Officer Takeshi Natsuno, using its 13.76% stake to force a vote on his leadership at the upcoming June 24 annual general meeting.
"Shareholders cannot afford to wait another six years for a turnaround under the same leadership team that delivered today's outcomes," Seth Fischer, Founder and Chief Investment Officer of Oasis, said. "KADOKAWA - and the creators, employees, partners and shareholders who depend on it - deserve better."
The activist's case centers on a steep decline in performance under Natsuno's five-year tenure, with operating profit falling from JPY 13.6 billion to JPY 8.1 billion and basic earnings per share collapsing from JPY 77.42 to JPY 8.71. Oasis also highlighted that Kadokawa missed its lowered FY26/3 operating profit forecast by more than 21 percent.
The public battle sets up a crucial showdown at the company’s AGM, where shareholders will vote on both Oasis’s proposal to dismiss Natsuno and the board’s proposal to reappoint him. Kadokawa’s board formally opposed the activist's proposal on May 14, backing Natsuno for his role in business reforms and managing a 2024 cyberattack.
Oasis laid out six primary arguments for removing the CEO in its "A Better KADOKAWA" campaign. The fund claims leadership has allowed value leakage from key gaming subsidiary FromSoftware, the studio behind the global hit "ELDEN RING," by not bringing more publishing economics in-house.
The activist also criticized a "quantity over quality" intellectual property strategy, poor execution in mobile gaming, a lack of cost discipline, and inadequate governance. Oasis pointed to a JPY 2.7 billion impairment on the animation studio Doga Kobo, equivalent to 90% of its acquisition price, just one year after purchase.
Despite the performance metrics cited by Oasis, Kadokawa's board remains firm in its support of Natsuno. The board's statement highlighted his importance in ongoing business structure reforms and his crisis management leadership following a significant cyberattack in 2024.
The confrontation introduces a new layer of governance risk for investors, who must weigh the activist's performance arguments against the board's push for leadership continuity. While the activist campaign has focused attention on the company's direction, analysis from Simply Wall St suggests the market is not currently treating the challenge as a "thesis breaking shock" for the publisher of "ELDEN RING".
The campaign puts the focus squarely on the June 24, 2026, shareholder meeting, which will determine the company's leadership direction. A successful ouster could trigger a strategic overhaul, while a victory for management could entrench the current strategy despite the vocal dissent from its significant shareholder.
This article is for informational purposes only and does not constitute investment advice.
