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[Li Mu Bai]

Nintendo Company Ltd. have announced that they plan to buy back their stocks to appease their investors.

This means that Nintendo have bought back $43 billion yen worth of stock. The shares were bought on Friday and the transaction took place on Monday.

http://www.cube-europe.com/news.php?nid=6920

At current exchange rates=392,568,244.32 USD

Anticipating a stock rise due (as predicted) with the introduction of the NDS? Or further solidifying a controlling stake within their own company? I think in this thread regarding Bill Gates to Yamauchi: If you let us buy Nintento, we will do it. http://www.ga-forum.com/showthread.php?t=8831&page=4&pp=50

DCharlie established that Yamauchi alone owned 10% of Nintendo's stock, & Nintendo officers' holdership is at 15%, bringing internally controlled stock holdings to 25%. (seeing as how Yamauchi is still on the board, though legally he's simply a shareholder) I'm unsure about their current stock price, (& am frankly too lazy to look) but wouldn't this move place Nintendo now as majority stockholder?

 

[cvxfreak]

And so it continues.

 

[Matlock]

Looks like they're afraid of a hostile takeover.

 

[beerbelly]

I don't quite understand. So does this mean a buyout is a possibility?

 

[Justin Bailey]

I don't quite understand. So does this mean a buyout is a possibility?

Not anymore.

 

[AniHawk]

Looks like they're afraid of a hostile takeover.

Of course. Nintendo does this every year by the way. Or at least since 2002.

 

[Li Mu Bai]

I don't quite understand. So does this mean a buyout is a possibility?

I think this move solidifies that this can never happen.

 

[Jonnyram]

$43 billion yen

So which is it??? $ or yen?

 

[DopeyFish]

I think this move solidifies that this can never happen.

i think you mean when DCharlie was talking about nintendo stocks and the POSSIBILITY of yamauchi having 10% yet still being owner by majority. (in theory)

 

[Renegade]

Maybe, Maybe not. It means Nintendo is less liable to a hostile takeover, but it also means Nintendo may be more able to be purchased by a company catch free.

 

[Li Mu Bai]

i think you mean when DCharlie was talking about nintendo stocks and the POSSIBILITY of yamauchi having 10% yet still being owner by majority. (in theory)

No Dopeyfish, DCharlie verified that Yamauchi was a 10% shareholder. Making him the single majority individual stockholder. Read the link.

 

[beerbelly]

I really want Ninty to be no. 1 again and teaming with Microsoft and their powerful marketing could sure help out.

 

[Jonnyram]

Well after the Reuters article finally loaded for me, I can see it's yen. It's about 2.5% of their stock, which still leaves well over 50% of the stock floating, I think. So hostile takeover would still be possible. Stock price has been falling the last couple of days too.

 

[Justin Bailey]

Well after the Reuters article finally loaded for me, I can see it's yen. It's about 2.5% of their stock, which still leaves well over 50% of the stock floating, I think. So hostile takeover would still be possible. Stock price has been falling the last couple of days too.

Jesus, $400 million is only 2.5%? Damn. . .

 

[explodet]

Hmmm, I wonder if I've got 8 billion dollars to burn...

*checks his other pants*

 

[DrGAKMAN]

This kinda goes along with my "lower expectations" plan. See not only is it benificial when Nintendo suddenly comes out and "shocks" us with something we wouldn't expect, but in the mean time, it lowers their perceptive value (in turn lowering their stock prices) so that they can buy back their stock at bargain prices. Think about that eh?

 

[snapty00]

I really want Ninty to be no. 1 again and teaming with Microsoft and their powerful marketing could sure help out.

A company as big as Microsoft doesn't "team up" with other companies, especially not ones like Nintendo. If they ever "team up," it'll be the beginning of the end of the real Nintendo.

 

[Li Mu Bai]

Well after the Reuters article finally loaded for me, I can see it's yen. It's about 2.5% of their stock, which still leaves well over 50% of the stock floating, I think. So hostile takeover would still be possible. Stock price has been falling the last couple of days too.

2.5% only? I knew that Nintendo had a history of buying back their stocks when they were low to stabilize them, but Jonnyram what is their current stock price? And I had recently read their stock was rising based upon the NDS.

 

[Jonnyram]

Nintendo stock is 11370 yen right now. It got up to over 13000 after the DS was announced, but it was lower than 9000 at the end of last year (hence all the takeover gossip). I still think it's well undervalued at its current price, but we'll see how things go over the holiday season. The thing the investors don't like is that Nintendo don't take any chances. High risk high return is what it's all about, but Nintendo never come close to high risk.

 

[M3wThr33]

I have that page bookmarked. Very useful!
Nintendo's Stock

 

[NLB2]

This kinda goes along with my "lower expectations" plan. See not only is it benificial when Nintendo suddenly comes out and "shocks" us with something we wouldn't expect, but in the mean time, it lowers their perceptive value (in turn lowering their stock prices) so that they can buy back their stock at bargain prices. Think about that eh?

NINTENDO = MARTHA STEWART??????

 

[Li Mu Bai]

Nintendo stock is 11370 yen right now. It got up to over 13000 after the DS was announced, but it was lower than 9000 at the end of last year (hence all the takeover gossip). I still think it's well undervalued at its current price, but we'll see how things go over the holiday season. The thing the investors don't like is that Nintendo don't take any chances. High risk high return is what it's all about, but Nintendo never come close to high risk.

True, they are a very conservative company. (as they aren't engaged/nor ever have been in the business of risk) But this is in part why they have been so profitable, as well as amassing huge hard cash reserves. But I see the NDS as being somewhat of a risk for Nintendo. I believe they sense this as well, which is why the GBA2 is currently under research & development. Although its success is imminent IMO.

 

[Duckhuntdog]

True, they are a very conservative company. (as they aren't engaged/nor ever have been in the business of risk) But this is in part why they have been so profitable, as well as amassing huge hard cash reserves. But I see the NDS as being somewhat of a risk for Nintendo. I believe they sense this as well, which is why the GBA2 is currently under research & development. Although its success is imminent IMO.

so would you say that if NDS is a sucess Nintendo is going to rework GBA 2 into NDS 2? That would make sense.

 

[WasabiKing]

Looks like they're afraid of a hostile takeover.

You can never be afraid of that if you only put out 49% of total shares to raise capital, while retaining 51% of the company. (please feel free to correct me, john tv, if I'm wrong, as it's been almost 10 years since my econ class)

 

[Justin Bailey]

You can never be afraid of that if you only put out 49% of total shares to raise capital, while retaining 51% of the company. (please feel free to correct me, john tv, if I'm wrong, as it's been almost 10 years since my econ class)

That's true but almost no public company does it that way.

 

[jarrod]

so would you say that if NDS is a sucess Nintendo is going to rework GBA 2 into NDS 2? That would make sense.

I doubt it, GB4 will likely be released in the next 3 years... then they can release DS2 in another 3 years.

 

[Chrono]

I doubt it, GB4 will likely be released in the next 3 years... then they can release DS2 in another 3 years.

GBA 2 would be a "downgrade" if it did not have dual-screens and the other NDS features like voice chat. Whatever handheld is next for Nintendo will be imo some sort of super-handheld that has graphics almost near Gamecube’s and NDS' cool features like wireless internet play and dual screens etc...

 

[jarrod]

GBA 2 would be a "downgrade" if it did not have dual-screens and the other NDS features like voice chat. Whatever handheld is next for Nintendo will be imo some sort of super-handheld that has graphics almost near Gamecube’s and NDS' cool features like wireless internet play and dual screens etc...

Wireless is a given (it was the direction handhelds were headed anyway, regardless of DS)... I think the next GB might incorperate a touchscreen possibly but I doubt two screens... more likely Nintendo will go for a larger high quality PSP style screen (once technology allows at a reasonable battery life). In fact, I'm thinking the next GB will match or exceed PSP spec for spec.

 

[Celicar]

Companies buy back stock all the time. This really isn't news.

Nintendo didn't buy back stock because they're afraid of a hostile takeover. They did it because they feel the stock price is undervalued and they will turn a profit when the market is adjusted for this.