Hong Kong hedge fund Oasis Management is demanding the immediate resignation of Kadokawa CEO Takeshi Natsuno at the upcoming general meeting.
Oasis is now the largest shareholder of FromSoftware's parent company, with a 13,76 percent stake. According to Reuters, the accusation is serious: Natsuno allegedly failed to properly capitalize on the enormous financial success of "Elden Ring."
FromSoftware's parent company is faltering
For us gamers, Kadokawa is primarily the powerhouse behind FromSoftware. But behind the scenes, things are in turmoil. Activist Oasis Management criticizes the fact that the international distribution of "Elden Ring" is entirely handled by Bandai Namco. This results in a massive outflow of money that should actually go directly to Kadokawa and the developers. A large-scale profit drain.
The figures further reinforce the criticism. The company's return on equity plummeted to a paltry 0,5 percent last year, after reaching 9,4 percent in 2022. Operating profit fell short even of downwardly revised forecasts. Major proxy advisors ISS and Glass Lewis have already sided with the investor, officially recommending that shareholders vote against the CEO's re-election. A brutal rebuke is looming.
Added to this is an endless string of scandals: a devastating ransomware attack with a massive data leak, trouble with antitrust authorities over the exploitation of freelancers, and a former chairman of the supervisory board convicted of Olympic corruption. Contrary to high expectations, Sony only acquired a 10 percent stake in 2024 and remains silent on the current vote. While Natsuno argues that a change of leadership in the midst of restructuring would only create uncertainty, patience appears to be wearing thin.
What do you think: Should FromSoftware's parent company management completely stay out of it and steer clear of the distribution of future hits like a potential "Elden ring 2“Hand it over completely to publishers like Bandai Namco again, or would that block the studio's long-term success?”
