Dentsu wrote down ¥310B of overseas goodwill — the board replaced the CEO

Dentsu Group, Japan's advertising giant, had spent more than a decade buying agencies abroad to build a global business. On 13 February 2026 the bill arrived with its FY2025 results: a ¥310.1 billion goodwill impairment recorded in the fourth quarter — ¥230.8 billion against the Americas and ¥79.3 billion against EMEA — attributed to having overpaid for international acquisitions, now repriced with higher discount rates and a conservative read of overseas risk. The group posted a statutory net loss of ¥327.6 billion on revenue of ¥1,435.2 billion.

The response was sweeping. The year-end dividend was suspended with none forecast for 2026. Global CEO Hiroshi Igarashi and governance chief Arinobu Soga stepped down effective 27 March 2026, replaced by Takeshi Sano, head of the domestic business — a change pushed in part by activist shareholder Oasis Management. A plan to sell the international operations had already failed after Apollo withdrew and Bain Capital declined to proceed. About 3,400 cuts announced in August 2025 — 8% of the international workforce — targeted ¥50 billion of savings by FY2027.

The split result told the story: Japan grew 6.2% organically while the overseas empire shrank, with Asia-Pacific revenue down 7.9%. Shares had fallen about 23% from December 2024 levels, and the new guidance — roughly 1% organic growth — admitted the international growth story was over. A decade of acquisitions abroad was being paid for by the profits at home.