Fuji Media Holdings Inc. began 2025 mired in controversy. A sexual harassment scandal involving a prominent TV host severely damaged the broadcaster’s reputation, leading to advertiser exodus, slashed earnings forecasts, and executive resignations. The company’s crisis management, characterized by a press conference barring cameras and media, further fueled the negative publicity. A subsequent 10-hour press marathon only intensified scrutiny.
Fuji Television’s headquarters building in Odaiba, Tokyo.
Paradoxically, Fuji Media’s stock price surged 45% this year, making it the top performer on the Topix index. This seemingly contradictory performance stems from investor optimism regarding potential opportunities arising from the company’s turmoil. Beyond broadcasting, Fuji Media possesses valuable real estate holdings in Tokyo and Osaka. Anticipation of new leadership, potentially more receptive to shareholder interests and improved corporate governance, is driving investor confidence.
“Fuji Media has a fascinating array of businesses,” notes Richard Kaye, portfolio manager at Comgest Asset Management. “People have been very excited about the opportunity of management change there.”
The scandal erupted in December with a tabloid report alleging sexual harassment by a well-known TV host. While admitting to “trouble” and reaching a settlement, the host denied violence and subsequently retired. Rising Sun Management, advisor to Nippon Active Value Fund and Fuji Media’s third-largest shareholder (along with Dalton Investments), sharply criticized the company’s response. They publicly denounced the initial press conference and demanded a third-party investigation, further calling for the resignation of board member Hisashi Hieda. This surge in stock price suggests other activist investors may be targeting Fuji Media.
Last year witnessed record activist investment in Japan, totaling at least ¥1.2 trillion ($7.7 billion), with real estate a primary focus. Elliott Investment Management pressured Tokyo Gas Co. to divest property, while Sapporo Holdings Ltd. faced similar pressure from 3D Investment Partners. Real estate is also central to the KKR & Co. and Bain Capital battle over Fuji Soft Inc.
Tokyo’s skyline, highlighting the potential value of prime real estate holdings.
Beyond its iconic Odaiba headquarters, Fuji Media owns diverse properties including offices, condominiums, hotels, nursing homes, logistics facilities, resorts, and even aquariums. Speculation mounts that asset sales could fund share buybacks and dividends. Furthermore, Fuji Media’s stock trades at a discounted 0.44 times book value compared to the Topix index’s 1.45, with Goldman Sachs estimating at least 69 billion yen in unrealized real estate gains.
“If there are management changes, then capital costs and stock prices will be more important for them and they could sell assets, such as land, buildings and buy back shares,” observes Hiroaki Tomori, executive fund manager at Mitsubishi UFJ Asset Management.
Fuji Media has announced an independent inquiry with results expected by March. The company has not commented on potential real estate sales or further changes. Foreign investor influence is limited by a 20% ownership cap and cross-shareholdings with Toei Animation Co., Toho Co., and Dentsu Group Inc. traditionally protect management.
“The moment you start to see something might pressure management to change and remove these really old-styled, entrenched and obstructive management, the moment that becomes a possibility, then the real value of the company’s assets might become realized for shareholders,” says Zuhair Khan, a fund manager at UBP Investments Co. “Up to now it’s been almost impossible.” The ongoing situation at Fuji Media presents a compelling case study in the intersection of corporate scandal, activist investing, and the potential for transformative change.
