Activist Investor Behind '99 Cent Mario Jump' Proposal Acquires Major Stake in FromSoftware's Parent Company Kadokawa

Activist investor Oasis Management Company has secured an 8.86% stake in Japanese media conglomerate Kadokawa, the parent company of Elden Ring developer FromSoftware, as reported by Gamebiz and Automaton. This significant holding could potentially allow Oasis to influence Kadokawa's business operations. In 2014, Oasis famously urged Nintendo to shift towards free-to-play mobile games, suggesting, "Just think of paying 99 cents just to get Mario to jump a little higher." Activist investors typically buy minority stakes to push for operational changes aimed at boosting shareholder returns.

Kadokawa's appeal lies in its diverse portfolio, which includes subsidiaries in publishing, anime, movies, and gaming. Key assets are FromSoftware, known for Dark Souls and Elden Ring, and videogame publisher Spike Chunsoft, owned through its Dwango subsidiary. Kadokawa is also a major manga publisher, with popular anime titles like Oshi no Ko, Re: Zero, and Delicious in Dungeon under its belt.

With such a rich array of intellectual properties, Kadokawa has become a sought-after entity. In late 2024, rumors circulated that Sony might acquire Kadokawa, but instead, Sony became one of its largest shareholders with a 10% stake and entered a strategic partnership to enhance global IP value through anime co-productions and leveraging Sony's international distribution channels.

Oasis's 8.86% stake is not far behind Sony's, as of March 2025, when Kadokawa's top three shareholders, including Sony, each held 10%. Oasis has not yet made any public demands, leaving its potential influence on the conglomerate unclear.

Historically, Oasis has targeted Nintendo, sending an open letter in 2014 to then-president Satoru Iwata advocating for a mobile-first strategy. Citing examples like Netflix, the letter emphasized accessibility and suggested free-to-play mobile games with in-app purchases, with chief investment officer Seth Fischer remarking, "We believe Nintendo can create very profitable games based on in-game revenue models with the right development team. Just think of paying 99 cents just to get Mario to jump a little higher."

Following this, Nintendo continued console development, launching the successful Nintendo Switch and its successor, the Switch 2, while also entering the mobile market with hits like Pokémon Go in 2016 and Super Mario Run the same year, though it's uncertain if Oasis's advice played a role.

In related news, last month, it was reported that Bluepoint, known for remakes like Shadow of the Colossus and Demon's Souls, pitched a Bloodborne remake last year, which was rejected by FromSoftware, not Sony as many assumed. FromSoftware is currently developing The Duskbloods, a vampire-themed game exclusive to Nintendo Switch 2, and continues to update the multiplayer game Elden Ring: Nightreign.