Photo: Nintendo
According to the official representatives of Nintendo, the company is currently getting ready to start buying back its stock. At this point, the estimated amount of the buyback is $1,1bn. Experts say that such a step may well help the company to support its market capitalization, thereby making the founder of the company a fortune.
In particular, Nintendo is getting ready to purchase from investors some 9,5 million shares of its own stock. This represents some 7,4% of Nintendo's stock. At this point, the company is planning to pay 12,025 yen per each share it is going to buy.
At this point, it is unclear how many shares the founder's family is ready to sell. However, some unofficial sources say the family of Nintendo's founder (who died in 2013) now holds 10% of the entire stock.
The decision to buy back the shares was made after the company announced about annual losses. The total loss in the marketing year that ends in march 2014, is estimated at $336 million.
The company is definitely tyring to attract funds in order to start restructuring its business. Most of the company's experts are sure that licensing games and selling the copyright is one of the few ways out of the crisis. Still, Nintendo doesn't seem to say goodbye to Mario and other game «celebrities» in the near future.
Meanwhile, Nintendo's stock is still weakening after the rally seen over the past few months. The decline started after Nintendo announced losses in Q4 2013. The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of NTDOF:
