Oasis, now Kadokawa’s largest shareholder with a 13.76% stake, claims the company suffers from material profit leakage due to licensing arrangements for its hit titles. While FromSoftware developed the blockbuster Elden Ring, the decision to have Bandai Namco handle overseas distribution has become a central point of contention for activists seeking new leadership. Major proxy advisors Institutional Shareholder Services and Glass Lewis have both signaled support for the opposition, advising shareholders to vote against Natsuno’s re-election.

Management maintains that removing Natsuno would trigger instability during a critical period of corporate reform. The company’s financial performance has struggled, with return on equity plummeting to 0.5% last year from 9.4% in 2022. Beyond investor pressure, Kadokawa is navigating a turbulent period marked by a major ransomware attack, legal disputes involving former chairman Tsuguhiko Kadokawa, and regulatory warnings regarding the treatment of freelance workers. Even if Natsuno survives the vote, a significant erosion of support could force the board to accelerate shifts in strategy and governance.