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Nintendo Buying Up to $1.2 Billion of Their Own Shares

Nintendo, following their Q3 financial reports, intends to buy back 10 million of their own shares. As a publicly traded company, the investors are looking to nearly double the amount in Nintendo's treasury from about 13 million shares to 23 million. This deal is slated to happen by March 31st according to their Notification of Acquisition. According to current yen to US ratio, this buy back would settle more than $1.2 billion in stock.

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Becuzisaid1392d ago

Can't wait for the headline "Nintendo fires Iwata".

thorstein1392d ago (Edited 1392d ago )

Followed by "Nintendo Plans to Release New Console by 2016"

uptownsoul1392d ago

Followed EXTREMELY closely by Super Mario Bros

-Foxtrot1392d ago (Edited 1392d ago )

...and Metroid, Starfox, Earthbound, Luigis Mansion 2 (an actual console sequel) and maybe F Zero.

I'd cry if they released a new Earthbound game

TomShoe1392d ago

Followed by "Super Mario Bros: The Movie 2 announced" :P

JoGam1392d ago

Followed by 20 Tens reasons Nintendo next console will fail articles per day on N4G. Smh

thorstein1392d ago

Followed by "Super Smash Bros. vs Marvel"

+ Show (2) more repliesLast reply 1392d ago
PSNintyGamer1392d ago

Only to replace with someone exactly like him.

-Foxtrot1392d ago

Like what Square Enix has done....never thought of that. It's kind of a risk isn't it.

JoGam1392d ago (Edited 1392d ago )

Yup

Ausbo1392d ago

nintendo should just do what they do best. That is making great first party games. I know its kinda sick to say this, but they should just be a third party developer and release on other consoles.

I grew up on nintendo games, and their consoles, but nintendo is failing. They don't support third parties, they have lost the casual and their consoles don't compare to their competitors. I LOVE NINTENDO, but they need to change to survive.

+ Show (1) more replyLast reply 1392d ago
DC7771392d ago

Especially before someone buys them out with all this wacko go on smartphones and other platforms obsession going around.

Good move regardless. IBM has been keeping it's value up for years doing this type of stuff.

cleft51392d ago

This seems like a move on Nintendo's part to consolidate their power so that they aren't beholden to ignorant investors that think only of profit with no long term outlook.

Wouldn't it be interesting if Iwata gave an inflated, unrealistic report of how many WiiUs they would sell to lower the stock price, knowing it would return to normal but put investors in a state where they would be eager to sell stock. I don't know, that seems a little extreme, but wow if it was true what an insanely brilliant move on their part it would be.

DC7771392d ago

It could be true I would suppose it would go well with their silence on release dates for most of the bigger games coming this year. Time will tell.

lmcontaldi1392d ago

Anyone here good with finance and want to give me a run down on what exactly is happening?

Is this something to do with Yamauchi's inheritance or is this a savvy power play?

theEx1Le1392d ago (Edited 1392d ago )

Essentially it keeps the companies value up, as there is less shares to trade. However it may also be a power play from within the company, but I'm not really to sure to be honest.

kneon1392d ago

That's how it's supposed to work, but usually the effect is short lived. If investor sentiment remains negative then the stock will just go down again.

Personally I believe share buy backs are usually a waste of capital. If they want to prop up the stock and return value to investors then dividends is a better approach.

jgrigs091392d ago

When a company do share repurchases( stock buy back) it could mean many things. They want the value to go up in their company, is like theEx1Le said. Another reason to me which seems more reasonable. Would be they want to buy back those shares so there are less shares to be bought. They could retire those shares or use those as re-issurance or keep them in treasury stock. Also when companies generate a lot of cash and spend less on capital they put that on their balance sheets. Which makes them a target. Which leads to be taken over. There is a lot more to it, i'm just trying to sum it up as short as i can.

Demoa1392d ago

nintendo just stop please

lilbroRx1392d ago

Just stop having the best selling games and being the most recognizable gaming company? No, that is not going to happen.

deadfrag1392d ago

Stop what?This is actually a great move it will allow Nintendo to own themselfs and not be at the mercy of greedy share holders!

OhMyGandhi1392d ago (Edited 1392d ago )

they are a couple releases away from "angry birdy" their core franchises.
I love Nintendo. I love Sony. I love Microsoft. They all have great things going for them. Have each company made their fair share of mistakes? of course.
Do I blindly follow any particular company, blissfully ignoring their shortcomings while singing their praises as "the superior company". No.
Nintendo needs to get their sh*t together. Microsoft needs to chin up and figure out what it wants to do with itself. I don't much care for the ambiguous "it's an entertainment center!" sentiment. It's very much competing against other "entertainment centers" like the Wii-U and PS4.

While none of that has anything to do with Nintendo buying back it's own stock, and Iwata cutting his salary in half, it has everything to do with honesty and integrity. All three companies are in the business of making money. There's no, "I'm your best friend" regardless of whatever caffeine induced PR head says otherwise.

It's up to us to decipher headlines like these, but take every rant or sleight against a particular product with a grain of salt. Do not blindly align yourself with a company that you think owes you something, nor wish for the impending failure or bankruptcy of said video game company.

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