Nintendo Only Gets About 10% Of Money Spent on Pokemon GO

[Aquamarine]

Aquamarine said:

CovenanterA13 said:

One thrid of 30% is 10% of the Pokemon company's share (though they don't directly as that will be funneled into future Pokemon endeavours rather than go back to Nintendo directly) Nintendo also owns a small part of Niantic.

You're correct.

For those who are confused, it's like this:

 

Nintendo directly owns 32% of the Pokemon Company

Nintendo owns 35% of Creatures Inc. -> Creatures Inc. owns 32% of The Pokemon Company -> Nintendo indirectly owns 11% of The Pokemon Company

=

Nintendo owns 43% of The Pokemon Company directly and indirectly

 

 

30% of revenues from Pokemon Go go to The Pokemon Company, so Nintendo indirectly benefits from 13% of revenues of Pokemon Go (but they'll most likely just get reinvested into Pokemon)

In addition, an extra 10% of revenues go directly to Nintendo

=

Therefore, Nintendo benefits from 23% of revenues in total, excluding their small share in Niantic and the dividends they may accrue.

I also have an estimate as to the share that Nintendo owns of Niantic.

In a Feb. 25 Series A venture financing round, Niantic valued itself at $150 million.

 

So the $20 million that Google + Pokemon + Nintendo put into the company would theoretically imply a combined equity value of 13.33% assuming the same valuation.

 

Let's assume that the equity in the $20 million in Series A Funding from The Pokemon Company, Google, Inc. and Nintendo Co., Ltd. was evenly distributed.

Therefore:

$6.7 million -> Nintendo's investment in Niantic -> 4.44% Nintendo's Equity in Niantic

$6.7 million -> The Pokemon Company's investment in Niantic -> 4.44% Pokemon's Equity -> 1.91% Nintendo's Indirect Equity in Niantic (because Nintendo owns 43% of The Pokemon Company)

$6.7 million -> Google's investment in Niantic -> 4.44% Equity in Niantic

=

So in theory, Nintendo could own 6.4% of Niantic directly and indirectly.