Kadokawa Corporation's CEO, Takeshi Natsuno, has successfully retained his position following the company's latest annual general meeting. This outcome comes despite a concerted effort by the Hong Kong-based activist investor group, Oasis Management, to have him removed.
Oasis Management, which became Kadokawa's largest shareholder in March, has been advocating for changes within the company, arguing that it has not fully capitalized on the success of its major titles, notably FromSoftware's Elden Ring. The investor group has publicly criticized the company's decision to partner with Bandai Namco for Elden Ring's publishing, suggesting that self-publishing would have allowed Kadokawa to retain more of the revenue. They refer to this as "continued value leakage."
Oasis Management launched a campaign, including a dedicated website, to convince other investors to vote against Natsuno. Their efforts appear to have impacted Natsuno's shareholder support, which has reportedly decreased from 90% to 59.68% over the past year. However, these efforts were not enough to unseat him at the recent meeting.
Following the meeting, Kadokawa indicated that it would review its management structure, executive compensation, and progress on its medium-term business plan. While Natsuno remains in his role, the company's stated intention to examine these areas suggests that scrutiny from investors will continue.
Activist investors like Oasis Management typically aim to influence corporate strategy to maximize shareholder value, often through vocal advocacy and strategic stock acquisition. Their focus on Elden Ring highlights the significant financial impact of successful game releases and the ongoing debate within the industry about optimal publishing strategies.