GungHo Online Entertainment, Inc. (3765) – a modern retelling of an Emperor’s New Clothes

Activist investor Strategic Capital argues that GungHo's management has become entrenched and complacent, leading to a significant destruction of shareholder value. The company has failed to produce any new hit games despite massive investments, and its market valuation is almost entirely comprised of net cash. Strategic Capital proposes a share buyback, a large dividend, and improved corporate governance to unlock value.