Hong-Kong based activist investment firm Oasis Management Company recently disclosed that it has notably expanded its ownership in Japanese publishing conglomerate Kadokawa, which serves as the parent entity for FromSoftware, the developer behind Elden Ring. According to a filing submitted to the Ministry of Finance on June 23, Oasis has acquired an additional 2,215,200 shares, elevating its ownership from 13.76% to 15.25%. As noted by Game Biz, the hedge fund has been intermittently purchasing Kadokawa’s shares since May 18, with one million shares obtained through an off-market deal on June 16.
Oasis Management Company operates as an activist investor, a practice where it acquires substantial stakes in companies to influence their management strategies, typically aimed at enhancing shareholder value (distinct from political activism). Within Kadokawa, its primary objectives include bolstering the company’s corporate value over the mid to long term, improving the efficiency of the board of directors, and refining corporate governance. Furthermore, it intends to optimize revenue from Kadokawa’s flagship intellectual properties through approaches such as AI implementation, strategic asset utilization, assessment of the shareholder framework, and revisions to the company’s M&A strategy and capital policy.
The fund has been progressively acquiring shares in Kadokawa since March this year, progressing from an 8.86% stake to an 11.85% stake within a few weeks, and securing the position of Kadokawa’s largest shareholder with 13.76% ownership by the end of the month. Nevertheless, Oasis does not appear to be ceasing its efforts. Holding a 15.25% stake currently, the hedge fund is contemplating an increase of over 5% in its ownership in the near future, and may pursue additional acquisitions both on and off the market, contingent on obtaining necessary approvals.
The latest report also indicates that Oasis plans to submit proposals to Kadokawa concerning the appointment and removal of key executives, modifications to the board of directors’ composition, and the publisher’s approach to business transfers, dividend policies, and other critical aspects of its capital strategy.
Since becoming Kadokawa’s largest shareholder in March 2025, Oasis has already taken considerable action. Notably, in May, it released a comprehensive 130-page document advocating for the removal of Kadokawa’s current CEO and critiquing the company’s management policies, including “profit leakage” resulting from FromSoftware’s dependence on third-party publishers. In response, Kadokawa has dismissed Oasis’ attempts to remove its CEO for the time being and has countered many of its arguments as demonstrating a lack of fundamental understanding of the company’s operations.