News Article

Nintendo Completes Share Buyback, Including Some Holdings of Hiroshi Yamauchi's Family

Posted by Thomas Whitehead

$1.1 billion of shares purchased

Yesterday we reported that Hiroshi Yamauchi's heirs had expressed a desire to sell some Nintendo shares, with the inheritance from the former Nintendo President set to bring related taxes upon the family. This tied in with Nintendo's previous announcement that it was planning to acquire up to 10 million of its own shares as part of a buyback, with details revealed yesterday confirming that the process would be completed on 4th February on the Tokyo Stock Exchange.

Nintendo has now completed that share buyback, under the following terms:

  • 9.5 million shares purchased
  • A cost of 12,025 yen per share
  • That's around 7.4 percent of outstanding stock in the company, taking Nintendo's self-owned "Treasury Shares" to a little over 17%
  • The buy back cost 114 billion yen, which is roughly $1.1 billion US dollars

Nintendo itself confirmed the scenario that Yamauchi-san's four children, who received the Nintendo stock, will face taxes on the stock they inherited. The overall inheritance from Yamauchi-san was for around 10% of Nintendo's shares, more than the buyback from the company, and it's been made clear that although some of the family did sell their shares to Nintendo in its buyback, it is unclear which particular members did so and how many shares they sold.

From Nintendo's perspective, it's now completed its pricey acquisition of shares, a move to shore up the company's position on the stock exchange. Since the Investor Briefing last week the company's shares failed to receive a boost from the announced strategies, and have slowly declined since — wider economic concerns in Japan as a whole may have also been a contributing factor in recent days.

[via bloomberg.com]

More Stories

User Comments (61)

MrGawain

#2

MrGawain said:

I wonder if Nintendo has been delaying announcing anything new until the share buyback so the price didn't go up?

Either that or they've got diddly squat at the moment.

andjahiam

#3

andjahiam said:

After fukishima I am surprise they are doing as well as they are. That event was apocalyptic and few recognise what japan is going through.

rjejr

#7

rjejr said:

Glad that's over. Maybe they'll do something crazy now like announce some Wii U game news.

January has come and gone w/o a Nintendo Direct. It's practically the ONLY way they market and advertise themselves and they just blew off an entire month. The winter Olympics start in 4 days and you'ld almost never know they have a related Mario game w/ online play. They should at least be hawking some type of TVii connection in the US like they had for the Super Bowl. The Super Bowl actually had it's own little link on the TVii start up screen. It was a nice touch. Guess we'll see how the week goes, they HAVE to say something. Getting that store demo into homes would be a good start.

spidey1010

#9

spidey1010 said:

Oh, wow. I expected them to make the purchase bit by bit, over a matter of months.
I'm really happy they didn't. The price is pretty low right now.

Macarony64

#10

Macarony64 said:

@sinalefa usually it takes longer if you don't have the cash on hand but it looks like it did and having already made deals with the family helped.

Pod

#11

Pod said:

Iwata & Co. knew they'd have to buy back shares, as hotheaded investors might otherwise pressure them into breaking company policies and start making the same mistakes as everyone else is right now.

Seems they lined up all their bad news (or at least, all the news that would make shares drop in price) for the same couple weeks, and bought back at an almost historic low.

This simultaneously stabilizes the share price, however, avoiding further slips into junk status, as Nintendo absorbed the shares from the most fidgety of inventors that are likely to sell to short term holders. I'd personally expect announcements of new games to come around after the release of Tropical Freeze. We should see a rise in both share prices and system sales there.

Dogpigfish

#13

Dogpigfish said:

That's one way to spin that the Nintendo family just sold a bunch of stock so they don't lose significantly more.

Mk_II

#14

Mk_II said:

@Dogpigfish They probably have to sell to pay the taxman. This is usually the case when someone inherits a substantial amount

steamhare

#15

steamhare said:

Or cover their substantial "child of a rich guy" debts. The blow and ladies of negotiable affection won't pay for themselves. Well, not how they're using them...

Morph

#16

Morph said:

@MrGawain possibly, but then id have thought they would have done it before their investor briefing last week, unless that had an obligation to inform investors of their intentions. Wouldnt be too suprised to see a nintendo direct soon tho

LUIGITORNADO

#18

LUIGITORNADO said:

@Macarony64

The last thing Nintendo needs are more Japanese IPs and a bloated Japanese developer.

Another western developer would be more malleable and preferable as they would be more fine tuned to the western markets needs.

unrandomsam

#19

unrandomsam said:

@LUIGITORNADO Western console games are rubbish the only times it has worked is when they were trying to be Japanese. (Look at Sonic Team USA when they had to use a Japanese work ethic.)

LUIGITORNADO

#20

LUIGITORNADO said:

@unrandomsam
Some could say the same thing about Japanese games. Fact of the matter is, there is money to be made in the western market, and it wouldn't hurt if Nintendo had more stake in the market instead of just Retro.

Technosphile

#22

Technosphile said:

I agree fully with folks in this thread pulling for Nintendo to make a move with regards to western development.

To the uninformed people who are disagreeing with that: you are living in a fantasy world where Japanese game development has not rotted and is still the core of the industry. Today, an example of how a AAA Japanese game sells is The Wonderful 101.

Nintendo should purchase Next Level Games outright, for starters.

ICHIkatakuri

#24

ICHIkatakuri said:

@XFsWorld Please no, they should (though I doubt they would/could) buy up eastern devs, if they got hold of treasure, capcom, platinum and Sega then they could make the Wii u a bastion of eastern game design which would bolster it as a very unique product further separated from the ps4 and xbone.

TheRealThanos

#25

TheRealThanos said:

@spidey1010 They had to do it before the end of their currently running fiscal year (ends on 31st of March) for it to not have a negative effect on the quarterly financial overviews of the new fiscal year, so at the most it was going to take 1,5 months. Also because of the currently favorable conditions in Nintendo stock exchange land.
@ICHIkatakuri agreed. Although some Western Studios to accompany that wouldn't hurt, but I like your idea.

ICHIkatakuri

#26

ICHIkatakuri said:

@TheRealThanos I would love to play western games too but think by distancing the Wii u as a gaming prospect more than just Nintendo games then more people would buy it and the Western games would appear. It would preserve traditional Japanese game design which seems to be dying off as many companies can't keep up with high development costs.

bloodycelt

#28

bloodycelt said:

Actually, I do think Nintendo should buy some eastern developers, namely ones that would round out their short-comings, Gust for instance has proven to be a solid developer for traditional JRPGs that would work well with the WiiU. Treasure or Irem could round them out with solid shooters (imagine a treasure made star fox?). At the same time they should get a western developer to shore up Retro. One that can either free Retro up to make another Metroid, or make one themselves (And maybe Mario Paintball). Another option is to create a company to collect veterans of LucasArts, as old-school adventure games also would work well with a touch screen. They can't rely on third party support, and must strategize for being the sole publisher on WiiU.

gaby_gabito

#29

gaby_gabito said:

Awesome! I have to admit I was concerned that those shares could have been bought by a competitor!

ICHIkatakuri

#30

ICHIkatakuri said:

@XFsWorld nope, sorry I'm a fan of games in general. People buy Nintendo consoles mainly for Nintendo games, I don't see many western companies in need of a buyout that would be worth purchasing but to get the multi-platform games developed Nintendo needs to increase the niche buyers and the easiest way would be to buy Japanese companies who are a bit all or nothing in the bank balance. From software has recently stated they don't know if they could afford to make a ps4 game, why not court themost and make their fans buy a Nintendo machine. Those mutiplatform western games will follow when the Wii u sales increase.

XCWarrior

#31

XCWarrior said:

We'll see what their next plan of action is. Should be interesting. Hopefully it involves new games (or VC) on their systems in the month of February beyond just DK.

T7L3R

#32

T7L3R said:

Idk about you guys, but I'm tired of all the financial news for a while. Time for some news about games! We are in dire need of a Nintendo Direct.

LUIGITORNADO

#33

LUIGITORNADO said:

@unrandomsam

The Western market is quite large, having more developers under the Nintendo umbrella would not be a bad thing. Quit being short sighted and anti-western. Do you hate Retro studios because they are based in the States?

electrolite77

#34

electrolite77 said:

The answer to the debate over whether they should buy Eastern or Western developers is both. They need variety.

To dismiss all Western games/devs as no good or all Japanese games/devs as no good is ludicrous.

T7L3R

#36

T7L3R said:

And for you guys saying Nintendo needs to buy Western developers...I'll only support it if they buy EA and shut them down and then buy Activision and make COD an exclusive.

Just kidding BTW.

TheRealThanos

#37

TheRealThanos said:

@electrolite77 Agreed. Yet the idea that @ICHIkatakuri proposed in comment #24 is a VERY good one, as it would potentially set up Nintendo as being a must-have commodity again because of the unique experience it would then (even more so) be able to offer people. Otherwise it would just be the same type of games. But for me personally, some Western developers definitely make the grade and should be included.

Blackleg_sanji

#38

Blackleg_sanji said:

I agree with people here a lil western influence would be great more studios than just retro would be nice

ICHIkatakuri

#39

ICHIkatakuri said:

@electrolite77 I have nothing against them buying western devs just don't think there are any worthwhile in need of buying at the min, if this was a year ago when thq went under then they should have bought their assets, Sega though comes with relic and the rather loved games workshop licence rts ips which the Wii u (probably the only console capable of decent rts controls) is sorely lacking in :-)

Captain_Toad

#40

Captain_Toad said:

Well that was wrapped up rather quickly. Heh, Heh.

For those thinking Nintendo buying out western third parties is a bad idea. Check out Retro Studios's Metroid Primes and DKC's and Next Level Games Mario Strikers and Luigi's Mansion Dark Moon. More games like that would seriously rock.

Blackleg_sanji

#41

Blackleg_sanji said:

I swear if nintendo bout sega id cry of happiness!! skies of arcadiaU 😍😍😍😍✌️👌 id never leave my wiiu off again

Blackleg_sanji

#42

Blackleg_sanji said:

@Captain_Toad I dont understand y we dont have a mario strikersU yet or a luigis mansionU as well as
Pokemon snapU
Pokemon stadium 3(plz nintendo plz!!!)
Metriod and zelda are coming so theres that

XFsWorld

#43

XFsWorld said:

@ICHIkatakuri I didn't buy the WiiU for just Nintendo games, I bought it for third-party games too. I have a XB360 but prefer playing them on my WiiU. I don't plan on getting PS4/XB1 anytime soon. So yes, Nintendo please buy up some third-party studios.

LittleIrves

#44

LittleIrves said:

It's funny, considering this news story with all the doom-and-gloom lately.... I'm pretty sure a company that can throw down over a BILLION dollars in cash in the course of a day is not likely to sink any time soon. Everybody focuses on the Now-Now-Now... they're worried about twenty years down the road. That's how you sustain and grow a business.

electrolite77

#46

electrolite77 said:

@TheRealThanos @ICHIkatakuri

I agree there's an opportunity for them to build up relationships with Japanese developers especially with some of them struggling. Maybe aligning their handheld and home consoles better will allow them to leverage that.

They could have picked up some of the debris of THQ, they could have picked up either Bizarre or Black Rock to give them a regular provider of racing games-look at Black Rocks work on the excellent Pure and wonder what they could have done with Excitebike. Even giving NOA and NOE greater autonomy to build up their own development networks would be a sensible step. I don't even like FPS games but it wouldn't do Nintendo any harm to have a good one in their armoury....

TheRealThanos

#47

TheRealThanos said:

@electrolite77 Closer relationships with Sega (and subsequently Atlus) should be a given, and Capcom currently only has around $152,000,000 left in their combined accounts:
http://leadexample.net/articles/capcoms-bleak-financial-situation-leaves-shareholders-worried
So if Nintendo is prepared to smack a few billion at it, they can buy up the whole lot, because most of Capcom's IP's are also low in value at the moment, but they could rise again and maybe merging with Nintendo would be the way for them to do it and for Nintendo to try and gain back some more of the people that want to play more realistic games on a Nintendo platform...

electrolite77

#48

electrolite77 said:

@TheRealThanos

Capcom would be great. Nintendo getting their hands on the likes of Resident Evil and Devil May Cry, bringing back Onimusha, Powerstone and Mega Man and allowing them to be developed without the publisher panicking about revamping it for what they think a Western audience wants would be great

TheRealThanos

#49

TheRealThanos said:

@electrolite77 Would love me some of the Dreamcast's Capcom classics on the Wii U. New games preferably, but an HD lick of paint to speed up the release of games and let the Wii U pick up some steam, would be sufficient to start with. Onimusha would definitely be nice, but Powerstone and asymmetric gameplay sounds like a match made in heaven to me...

thanos316

#53

thanos316 said:

Now this is a smart move by nintendo. buying back your own stock for little money than you may have sold it for at first. then in 6 months are so they could sell it at a higher price. or control their own destiny more. very smart move. now nintendo just start investing in some r&d...

thanos316

#54

thanos316 said:

nintendo just needs to buy sega. or better yet get some indie dev to support your system more. a great app for $5 for the wii u gamepad would be amazing.

TheRealThanos

#55

TheRealThanos said:

@thanos316 They have already invested around an extra $10 million since moving both the console and handheld departments into the new building and that probably isn't the only amount that they will be spending, but it isn't something they have to start doing: it's already in motion.
The right foundations have finally been laid and now they have to start publishing more games and all the other good things that Iwata was talking about in the conference.

mch

#58

mch said:

@T7L3R
Pardon my french cher Monsieur, but you do see how this financial news explain to a great deal why there has not been a Nintendo Direct in the last month?!

In my opinion finance information about Nintendo should be addressed by a website with the domain: nintendolife.com

T7L3R

#59

T7L3R said:

@mch I'm just complaining about all the bad financial news that we've been hit with here recently...if I were nintendo I would be trying to cover some of the bad press with good press. I completely agree that nintendolife should cover financial news on nintendo but I'm tired of all the negative press I guess. However, this technically isn't a bad financial move by Ninty so my comment doesn't really pertain to this specific article.

Asgart

#60

Asgart said:

Well if you ask me, I think the reason we did not see a Nintendo direct in January is because of this. They completed the share buyback on a relatively low price, so now when they come out with some (hopefully) good news, the share prices will go up. In my mind it's a simple yet effective strategy.

BulbasaurusRex

#61

BulbasaurusRex said:

It makes sense that at least some of the heirs would want to sell. I've heard that inheritance taxes in Japan are ridiculously high.

Leave A Comment

Hold on there, you need to login to post a comment...