Dalton Investments has escalated its campaign against Fuji Media Holdings, joining forces with activist shareholder Aya Nomura, daughter of Japan’s famed corporate agitator Yoshiaki Murakami, to press for a strategic overhaul, according to a report by Bloomberg.
The Los Angeles-based hedge fund, led by co-founder James Rosenwald, is pushing for structural reforms at the Japanese broadcaster, including spinning off the company’s valuable real estate assets, that could, in Rosenwald’s view, double the group’s enterprise value.
As well as separaing Fuji Media’s property holdings — a move the company has so far resisted — Dalton wants the business to unwind entrenched cross-shareholdings, a long-criticised feature of corporate Japan.
Rosenwald confirmed he has spoken directly with Nomura, who holds an 8.96% stake and is the broadcaster’s largest outside shareholder. Dalton, which owns 5.83%, is now mobilising support from other investors ahead of a 25 June shareholder vote, including strategic outreach to Fuji Media stakeholders including Toho Co and Dentsu Group.
“This is a critical moment for corporate governance in Japan,” Rosenwald said. “Even one successful board appointment changes the boardroom dynamic and puts real pressure on the company to unlock value.”
Dalton’s campaign has already rattled the company’s leadership. Fuji Media recently rejected the hedge fund’s slate of 12 new board nominees, which included high-profile names like SBI Holdings’ Yoshitaka Kitao, a known critic of governance standards in Japan. The media giant has instead doubled down on its real estate strategy, arguing the sector offers long-term growth potential.
But critics say Fuji Media’s sprawling structure — which encompasses terrestrial and satellite broadcasting, music and game development, and a sizeable real estate portfolio – masks underperformance and dilutes shareholder value. Activists like Dalton see Tokyo’s recent regulatory shifts, including tax-free spinoff rules and pressure to boost capital efficiency, as tailwinds for meaningful change.
“The government understands the Japanese stock market is really cheap,” Rosenwald said. “For the first time in 30 years, all aspects of government are acting like allies to shareholders.”
Fuji Media has signalled a partial concession to investor concerns by pledging to buy back over JPY100bn in shares by fiscal 2029 and reduce cross-shareholdings to below 15% of total assets by 2027.
