We mentioned previously that Nintendo announced they were planning to buy back as many as ten million shares of their own company, in a buyback deal planned to benefit shareholders.
Today, more details have been released on this situation, with Bloomberg reporting that Hiroshi Yamauchi’s heirs (Yamauchi passed away last year) are wanting to sell their shares in the company, which they inherited after his death.
The shares of these heirs accounts for about ten percent of the company’s total shares, and Nintendo has already stated its willingness to buy back 9.5 million shares, which is about 7.4 percent of the currently outstanding amount. How many of the shares the Yamauchis are actually willing to let go of has yet to be confirmed, but the deal is estimated to be worth around $1.1 billion.
The good news for Nintendo is that while the company is planning for losses in the year ahead, they hold no current debt and have about $8.6 billion in the bank to work with. Their stocks are low, which makes it the perfect time for the company to buy back a bit of control.
We’ll report on further details as they arise in this developing story.
