Nintendo's Founding Family Sells Their SharesJon Ledford |
Nintendo has recently completed a $1.1 billion share buyback as members of its founding family sold some of their shares.
Bloomberg Businessweek has reported the heirs of Nintendo's former Chief Executive Officer Hiroshi Yamauchi, who roughly owned 10% of the entire company's stock, have started selling some of their shares. Hiroshi Yamauchi was the president of the big N as it made the drastic change from selling physical, Hanafuda playing cards to being a multi-billion dollar video game company.
Current Nintendo president Satoru Iwata has been headlining reports as of late while Nintendo's stock and revenue have continued to decline during the past year. Iwata was the first person outside of the Yamauchi family to ever be appointed company president back in 2002. Since then, Iwata has overseen many successful products, such as the Wii, Nintendo DS and Game Boy Advance. Unfortunately, the selling of the Yamauchi portion of the company stock can be interpreted as one of Yamuchi's children cashing out of the company before the company's value drops even lower.
While we do not know which one of Hiroshi Yamauchi's four children (who each inherited one fourth of Hiroshi's holdings) attempted to sell their shares or how much of their shares were actually sold, we do know that the big N shortly bought back $1.1 billion worth.
How this will impact other shareholders remains to be seen, but considering Nintendo is sitting on more than $8 billion in surplus and currently has no debts, the company can stand to survive a slight set back like this.