Shareholder Dispute Over Elden Ring Management Leaves FromSoftware CEO in Place

Takeshi Natsuno, the CEO of Kadokawa Corporation, which holds a majority stake in FromSoftware, has successfully fended off an attempt by activist shareholder group Oasis Management to remove him from his position.

Despite being Kadokawa’s largest shareholder with a 15.25 percent stake, Oasis Management’s proposal to oust Natsuno did not secure enough votes to pass, as announced by Kadokawa today.

On June 1, Oasis Management put forth a proposal claiming that Natsuno was “markedly unsuitable to serve as a Director of the Company.” They argued that under his leadership, Kadokawa’s earnings per share had plummeted to less than half of what they were five years ago. The group criticized Kadokawa’s approach, suggesting that the company’s focus on quantity over quality in its manga, anime, and video game releases had diluted its intellectual properties.

Oasis Management also pointed to FromSoftware, stating that despite owning this valuable asset, Kadokawa had failed to achieve significant global publishing success independently, which they felt was not adequately contributing to the overall growth or monetization of its intellectual properties.

The activist group previously advocated for FromSoftware to self-publish its titles rather than relying on external partners like Bandai Namco. They argued that if FromSoftware were to release another blockbuster title akin to Elden Ring, the lack of self-publishing would result in significant economic value being lost to external publishers instead of benefiting Kadokawa shareholders.

Following the shareholders’ vote on June 24, Kadokawa issued a notice titled “Regarding Changes in Members of the Board.” The results showed that a majority of shareholders supported Natsuno, rejecting Oasis Management’s proposal.

As part of Natsuno’s plan, Koji Okura, a former Director of Mitsubishi Heavy Industries, has been appointed to the board of directors. The exact percentage of shareholders who backed Natsuno’s proposal has not been disclosed.

Oasis Management has been steadily increasing its investment in Kadokawa over the past year, raising its stake from 11.85 percent in March to 15.25 percent by June 23, surpassing Sony Group’s 11.01 percent stake. Although they were unsuccessful in their attempt to oust Natsuno this time, their growing influence suggests that the next general shareholders’ meeting in 2027 could see a much closer vote.