Kadokawa CEO remains amid Oasis campaign

The activist is considering next steps after shareholders supported the CEO’s reelection to the board.

Japanese media and gaming giant Kadokawa’s CEO has successfully defended his board seat against activist Oasis Management which had called for him to step down over profitability and shareholder returns concerns.

The meeting results have not been disclosed yet, however a Reuters report citing contact with the company indicates that CEO Takeshi Natsuno secured enough support from shareholders to remain on the board at the Wednesday annual meeting.

Kadokawa added that its board would commit to an examination of the company’s management structure, executive compensation, medium-term business plan, as well as its shareholder engagement process.

Oasis, which holds a 13.8% stake in the company making it the largest shareholder, previously called for Natsuno’s removal from the board, arguing that the company has failed to maximize shareholder value despite owning some of Japan’s most valuable entertainment assets.

The company is best known as the parent company of game developer FromSoftware, creator of the blockbuster Elden Ring franchise. Other notable titles include Bloodborne and the Dark Souls trilogy. Demand for these titles have driven FromSoftware’s revenue up 51.5% in fiscal 2025.

However, Oasis condemned management for failing to fully capitalize on the company’s intellectual property portfolio, arguing it has overseen suboptimal capital allocation decisions that have weighed on profitability and shareholder returns.

For its part, Kadokawa defended management’s strategy, which it said delivered long-term value. The company added that replacing Natsuno would disrupt ongoing initiatives across its publishing, animation, and gaming businesses.

The activist said it would closely monitor the voting results and consider its next steps accordingly, although it reportedly expects the results will demonstrate a “significant loss of shareholder trust in Mr. Natsuno.”

Kadokawa’s stock closed at JPY3,346 on Wednesday in Tokyo, up 5.7% from Tuesday’s close. The stock is up 5.9% year-to-date.

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