Yesterday, Nintendo announced via an online press release that they successfully completed an 11.4 billion yen share buyback thanks to members of Yamauchi’s family selling their shares. In a brief interview with Business Week , a Nintendo rep added that they are currently unaware of how many shares were sold and which family members were the ones behind these deals.
As a result of this move, Nintendo was able to purchase roughly 9.5 million shares and effectively make up 7.4 percent of their outstanding stock demands. This buyback is considered good news, as it will help the company minimally recover from their financial misfortunes. Nintendo had also emphasized that pulling off this move would allow them to become more flexible with their capital and adapt to the ever-changing business environment.
2014 has not started out well for Nintendo and many people are continuing to question how they are going about handling things. Hopefully a strong E3 2014 showing, and the release of some more Wii U exclusives can be just what the company needs to get everything back on track.
Do any of you think that buyback was a good move by Nintendo? Please feel free us know in the comments section below.