A new report reveals that shareholders want Kadokawa Group’s CEO to resign over failure to capitalize on Elden Ring profits.
Elden Ring is one of the most popular souls-like games available, boasting millions of sales across various platforms. The devs have also churned out spinoff titles and even confirmed a spinoff movie, establishing the franchise. However, despite its remarkable success, the game has not translated into significant profits for the company, leading to accusations against the CEO.
Kadokawa Shareholders Want the CEO Out For Not Capitalizing on Elden Ring Profit
A recent report by Reuters reveals that Kadokawa Group, the parent company of Elden Ring dev FromSoftware, is currently facing pressure from shareholders who are calling for the resignation of CEO Takeshi Natsuno. While Natsuno remains in his position for now, a conflict is anticipated at the annual general meeting (AGM) scheduled for this Wednesday.
Oasis Management, based in Hong Kong, is leading the resistance as the largest shareholder in Kadokawa, having acquired a 13.76% stake in the company. They have accused CEO Natsuno of failing to take advantage of the success of Elden Ring. Kadokawa’s return on equity decreased significantly, falling from 9.4% in 2022 to only 0.5% last year. Additionally, Oasis has claimed that there has been “material profit leakage” due to Kadokawa managing publishing in Japan while Bandai handles overseas publishing.
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Oasis is not the only stakeholder seeking the removal of the Kadokawa CEO due to Elden Ring’s failure. A proxy report from Institutional Shareholder Services indicates, “While it may take time to find a replacement for Natsuno, this is a challenge worth accepting.” Additionally, another proxy advisor, Glass Lewis, suggests that shareholders should back Oasis’s proposal.
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