Report: Nintendo Founding Family Seeking to Sell Company Shares

Alex Co

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Report: Nintendo Founding Family Seeking to Sell Company Shares


Hiroshi Yamauchi's family is looking to sell ts company shares, with Nintendo preparing to buyback $1.1 billion worth tomorrow.

Following Nintendo's report on Bloomberg [http://www.escapistmagazine.com/news/view/131419-Nintendo-Makes-Major-Reductions-in-Wii-U-3DS-Sales-Projections], it states Nintendo will purchase as many as 9.5 million shares, or 7.4% of its outstanding stock at 12,025 Yen apiece, with the buyback said to total 114.2 billion Yen or $1.1 billion in US currency.

Yamauchi's inheriting family, comprised of four of his children, owns 10% of company stock. It's not currently known how many of the founding family's stock will be unloaded, with Nintendo spokesman Yasuhiro Minagawa saying, "We are not in a position to know how much shares the Yamauchi family will sell."

To take responsibility for the Wii U's abysmal sales, Nintendo CEO Satoru Iwata and other executives have agreed to have their salaries reduced [http://www.escapistmagazine.com/news/view/131774-Nintendo-CEO-Taking-Huge-Pay-Reduction-Due-to-the-Wii-U]. Even with the pay cut, Iwata is not done looking to remedy Nintendo's business woes, as the company CEO also revealed just a few days ago that he is considering mergers and acquisitions for Nintendo.


While Nintendo's stock is presently taking a hit, the video game company has $8.6 billion banked in terms of cash and equivalents, and has no debt as of September 30, 2013.

Should Nintendo fans be worried? With the way things have been swinging, recent developments might be a cause for concern, but we don't know for sure until it happens.

Source: NintendoLife [http://www.bloomberg.com/news/2014-02-03/nintendo-s-founding-family-to-sell-shares-as-buyback-terms-set.html]



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Dragonbums

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Honestly, it seems this is a whole butt load of overreaction. Or at the very least, new sites making it a huge fucking deal. I didn't see people scrambling to do this when Sony announced they lost $5 billion fucking dollars and both their headquarters at the initial launch of the PS3.

But everyone runs with their heads off? over a $300 million loss over the Wii U?
 

chiefohara

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8.6 billion in the bank!?

300 million loss over the Wii U.... Chump change.

Can't say that Nintendo are too pleased at the founding family's timing in this affair however...
 
Dec 16, 2009
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could this possibly be due to legal reasons? The shares were only just signed over after various red tape, the family intended to sell anyway. just a thought
 

PedroSteckecilo

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That's the problem with a company grown accustomed to being super successful... just getting by is no longer enough for its shareholders, they've gotta be making mad bank or all that money helping keep the company afloat is going to go elsewhere.

Not that I think Nintendo "really" deserves to fail... but it seems like they are making some bad decisions...
 

Alex Co

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Should Nintendo fans be worried? With the way things have been swinging, recent developments might be a cause for concern
Way things have been swinging? Recent developments? Pretty much most of the recent articles you guys have made about Nintendo have been completely false.

The only one which wasn't complete bull was the article about Iwata saying "We haven't ruled out mobiles"

PedroSteckecilo said:
That's the problem with a company grown accustomed to being super successful... just getting by is no longer enough for its shareholders, they've gotta be making mad bank or all that money helping keep the company afloat is going to go elsewhere.

Not that I think Nintendo "really" deserves to fail... but it seems like they are making some bad decisions...
No, the shares are just being sold over to Nintendo, nothing's happening to them.
 

Kmadden2004

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Mr Ink 5000 said:
could this possibly be due to legal reasons? The shares were only just signed over after various red tape, the family intended to sell anyway. just a thought
That sounds like the most likely reason behind this.
 

Alex Co

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chiefohara said:
8.6 billion in the bank!?

300 million loss over the Wii U.... Chump change.

Can't say that Nintendo are too pleased at the founding family's timing in this affair however...

Were do you get the 8.6 billion figure?

http://www.nintendo.co.jp/ir/pdf/2014/140129e.pdf
as of 31st December 2013

Current cash $5.5 billion

Total current assets $13.2 billion

Total assets $15.6 billion

Liabilities (owed to suppliers) $1.6 billion
 

Alex Co

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chiefohara said:
8.6 billion in the bank!?

300 million loss over the Wii U.... Chump change.

Can't say that Nintendo are too pleased at the founding family's timing in this affair however...
The PS4 costs billions to make. Just on R&D, licenses, and getting things running. Not counting the long term.

Same with xbox one.

If the Wii U doesn't get Nintendo its money, it won't have the money to make a new console. This shit gets exponentially expensive. You are forced to deal with AMD or Nvidia now. When the next gen comes around, they dictate what you get and for what price.

And they aren't cheap. Nvidia turned both Sony and MS away for not paying enough. These are huge companies. Only AMD went through with the deal, and that was because it was going bankrupt.

Why do you think investors wanted xbox to go away? Why would Sony abandon consoles if the ps4 didn't sell well?

Because its getting to the point that no one can afford to make consoles anymore. "billions" is chump change to these corporations. The only reason consoles exist now is to push other products the company is selling. or to help build consumer trust.

Its only big money to us, the peasants, working 5 days a week for 1/1000000000th of that these guys make.
 
Dec 16, 2009
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Kmadden2004 said:
Mr Ink 5000 said:
could this possibly be due to legal reasons? The shares were only just signed over after various red tape, the family intended to sell anyway. just a thought
That sounds like the most likely reason behind this.
hey, look at us, a couple of gamers being reasonable. who'd have thought it.
 

MetalDooley

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So basically this story boils down to..

"Shareholder dies.Family who inherited shares decide to cash in by selling said shares back to the company"

Would this even be reported anywhere apart from the likes of Forbes if it wasn't Nintendo involved?
 

Kmadden2004

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Mr Ink 5000 said:
Kmadden2004 said:
Mr Ink 5000 said:
could this possibly be due to legal reasons? The shares were only just signed over after various red tape, the family intended to sell anyway. just a thought
That sounds like the most likely reason behind this.
hey, look at us, a couple of gamers being reasonable. who'd have thought it.
Shhhh, not so loud.

The fanboys hunt guys like us for sport...

;p
 

Alex Co

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MetalDooley said:
So basically this story boils down to..

"Shareholder dies.Family who inherited shares decide to cash in by selling said shares back to the company"

Would this even be reported anywhere apart from the likes of Forbes if it wasn't Nintendo involved?
Uhm.. here's the thing, why sell shares that pay dividends. It is in most business circles a bad sign when the founders start selling off their shares...since it usually means they don't see the share value going up anytime soon and may have reason to believe the share value will likely drop.
 

chiefohara

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Kumagawa Misogi said:
chiefohara said:
8.6 billion in the bank!?

300 million loss over the Wii U.... Chump change.

Can't say that Nintendo are too pleased at the founding family's timing in this affair however...

Were do you get the 8.6 billion figure?

http://www.nintendo.co.jp/ir/pdf/2014/140129e.pdf
as of 31st December 2013

Current cash $5.5 billion

Total current assets $13.2 billion

Total assets $15.6 billion

Liabilities (owed to suppliers) $1.6 billion
I got it from the article the thread is based on.

"While Nintendo's stock is presently taking a hit, the video game company has $8.6 billion banked in terms of cash and equivalents, and has no debt as of September 30, 2013."
 

chiefohara

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Ultratwinkie said:
chiefohara said:
8.6 billion in the bank!?

300 million loss over the Wii U.... Chump change.

Can't say that Nintendo are too pleased at the founding family's timing in this affair however...
The PS4 costs billions to make. Just on R&D, licenses, and getting things running. Not counting the long term.

Same with xbox one.

If the Wii U doesn't get Nintendo its money, it won't have the money to make a new console. This shit gets exponentially expensive. You are forced to deal with AMD or Nvidia now. When the next gen comes around, they dictate what you get and for what price.

And they aren't cheap. Nvidia turned both Sony and MS away for not paying enough. These are huge companies. Only AMD went through with the deal, and that was because it was going bankrupt.

Why do you think investors wanted xbox to go away? Why would Sony abandon consoles if the ps4 didn't sell well?

Because its getting to the point that no one can afford to make consoles anymore. "billions" is chump change to these corporations. The only reason consoles exist now is to push other products the company is selling. or to help build consumer trust.

Its only big money to us, the peasants, working 5 days a week for 1/1000000000th of that these guys make.
Thanks for the clarification. I didn't know that.
 

Aiddon_v1legacy

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Dexterity said:
Should Nintendo fans be worried? With the way things have been swinging, recent developments might be a cause for concern
Way things have been swinging? Recent developments? Pretty much most of the recent articles you guys have made about Nintendo have been completely false.

The only one which wasn't complete bull was the article about Iwata saying "We haven't ruled out mobiles"

PedroSteckecilo said:
That's the problem with a company grown accustomed to being super successful... just getting by is no longer enough for its shareholders, they've gotta be making mad bank or all that money helping keep the company afloat is going to go elsewhere.

Not that I think Nintendo "really" deserves to fail... but it seems like they are making some bad decisions...
No, the shares are just being sold over to Nintendo, nothing's happening to them.
From what I understand there's a LOT of tax involved with those shares so Yamauchi's family wants to avoid that so they're just selling them back to Nintendo because they don't have a lot of use for them. This really isn't something that's a cause for concern and it doesn't really affect us. I really don't get why people jump to conclusion over this
 
Dec 16, 2009
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Kmadden2004 said:
Mr Ink 5000 said:
Kmadden2004 said:
Mr Ink 5000 said:
snip.
hey, look at us, a couple of gamers being reasonable. who'd have thought it.
Shhhh, not so loud.

The fanboys hunt guys like us for sport...

;p
oh no, its You Sir Are Being Hunted, all over again.

Ultratwinkie said:
chiefohara said:
The PS4 costs billions to make. Just on R&D, licenses, and getting things running. Not counting the long term.

Same with xbox one.

If the Wii U doesn't get Nintendo its money, it won't have the money to make a new console. This shit gets exponentially expensive. You are forced to deal with AMD or Nvidia now. When the next gen comes around, they dictate what you get and for what price.

And they aren't cheap. Nvidia turned both Sony and MS away for not paying enough. These are huge companies. Only AMD went through with the deal, and that was because it was going bankrupt.

Why do you think investors wanted xbox to go away? Why would Sony abandon consoles if the ps4 didn't sell well?

Because its getting to the point that no one can afford to make consoles anymore. "billions" is chump change to these corporations. The only reason consoles exist now is to push other products the company is selling. or to help build consumer trust.

Its only big money to us, the peasants, working 5 days a week for 1/1000000000th of that these guys make.
thats crazy, maybe these comapnaies need to get out of making multi media home entertainment devices, and start making consoles again
 

MetalDooley

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BigTuk said:
Uhm.. here's the thing, why sell shares that pay dividends.
Oh I don't know.Maybe his family decided they just want a quick payoff.Maybe his family hate the videogame industry and want out of it.Maybe they're required to sell for legal reasons.We have absolutely no idea why they're selling but of course that's not going to stop the gaming media from spinning what appears to be a fairly mundane story in a negative light
 

Alex Co

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I don't know enough about stocks, business, or the Yamauchi family to begin to infer what that means.

But it sure does look bad a marginally informed layman, like myself (and others).
 

Alex Co

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MetalDooley said:
BigTuk said:
Uhm.. here's the thing, why sell shares that pay dividends.
Oh I don't know.Maybe his family decided they just want a quick payoff.Maybe his family hate the videogame industry and want out of it.Maybe they're required to sell for legal reasons.We have absolutely no idea why they're selling but of course that's not going to stop the gaming media from spinning what appears to be a fairly mundane story in a negative light
Well lets put it this way, if you heard Bill gates' family was selling of their shares in Microsoft... what would you think.


All your reasons are perfectly logical but again, the timing is somewhat suspicious and cause for speculation. No matter how you spin it, it boils down to Owners cashing in their chips now.