Kadokawa Faces Pressure from Activist Investor Over Elden Ring Success
The boss of Japanese company Kadokawa has survived a shareholder vote on his future amid increasing pressure from an activist investor who believes the company has failed to capitalize on Elden Ring’s enormous success.
The boss of Japanese company Kadokawa has survived a shareholder vote on his future amid increasing pressure from an activist investor who believes the company has failed to capitalize on Elden Ring’s enormous success.
The CEO of Kadokawa, Takeshi Natsuno, has managed to retain his position following a shareholder vote, despite pressure from activist investor Oasis Management. Oasis, now Kadokawa's largest shareholder with a 13.76% stake, has increased its ownership to 15.25% and aims for further growth. The investor is dissatisfied with Kadokawa's handling of Elden Ring, a game developed by FromSoftware, a subsidiary of Kadokawa.
Despite Elden Ring's remarkable success, selling 30 million copies and expanding with releases like Tarnished Edition, Oasis believes Kadokawa is not maximizing the franchise's financial potential. One key issue is the global publishing strategy, with Oasis pushing for Kadokawa to self-publish its games worldwide instead of relying on partners like Bandai Namco for international distribution.
Oasis has emphasized the importance of FromSoftware, describing it as Kadokawa's prized asset with significant global recognition and a dedicated fanbase. The investor advocates for a more strategic approach to managing FromSoftware, ensuring that the studio's value is fully realized. While there have been speculations about potential acquisitions of FromSoftware, Oasis is focused on enhancing the studio's role within Kadokawa for long-term growth.
Director Hidetaka Miyazaki of FromSoftware has addressed the shareholder pressure, affirming the studio's creative freedom and commitment to producing quality games. With upcoming releases like Elden Ring Tarnished Edition and The Duskbloods, fans are eager to see what the future holds for FromSoftware, including the possibility of an Elden Ring sequel or a movie adaptation in development.
