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Forums - Nintendo - Nintendo founding family looking to sell shares

TheLastStarFighter on 03 February 2014
Kresnik said:
TheLastStarFighter said:

It is acceptable for a writer to say they have $8 billion or so in the bank.  The additional assets they are referring to are not things like buildings or other physical assets, but rather things such as cash which has been invested. It is more accurate for the writer to say they have $8 billion than $4 billion, though if they were being technical they could break it down.  But if Nintendo wanted to blow $8 billion to acquire something, or to pay the bills or whatever, they could do so without selling property or borrowing, and they could do it quickly.  Again, to compare to an individual, it's like if you or I had 100k in cash in our checking account and another 100k in an investment account.  We would say we have 200k "in the bank", which is how people (accurately) describe Nintendo's financial situation.


Question then - they can access their short term investments whenever they need to, then?

Like you say, they want to buy a $5 billion investment tomorrow with only their own cash.  The money in "short term investments" can be withdrawn straight away and put into their own bank account to make the purchase?

If so, then never mind.  I did not know that!


Yes, as Kowen said the short term investments can become cash reasonably quickly and with a high level of certainty.



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Vinniegambini on 03 February 2014
Soundwave said:
Seems to me like Yamauchi's daughter and Mr. Arakawa (her husband) don't have much confidence in Iwata if they're immediately dumping their stock.

See inheritance tax in Japan. You would want to sell too.



Soundwave on 03 February 2014
TheLastStarFighter said:
Soundwave said:
Seems to me like Yamauchi's daughter and Mr. Arakawa (her husband) don't have much confidence in Iwata if they're immediately dumping their stock.


Or they could just care less about the family buisness and now that Daddy is gone she's gonna get that boob job, Lambo and diamond plated grill she always wanted.  More likely however, they are just willing to sell back maybe 5% of their massive holdings.


They are already multi-millionaires, they showed Arakawa and Yamauchi's daughter's home that was being built in Hawaii about 11 years ago in a BBC feature on Nintendo ... they ain't hurting for cash, lets just put it that way. 

The only reason I can see to sell so quickly is if they don't have much confidence in the company going forward and are worried about devaluation of their inheritance. Basically they're going to take that money out of Nintendo and just invest it into something else. 

It's like Arakawa at least doesn't know a lot about the game business. Yamauchi's son also worked in the game industry for a while too. 

Would they be selling their stock if this was 2007 instead and the stock was on the move upwards? Somehow I doubt it. 



TheLastStarFighter on 03 February 2014
Soundwave said:
TheLastStarFighter said:
Soundwave said:
Seems to me like Yamauchi's daughter and Mr. Arakawa (her husband) don't have much confidence in Iwata if they're immediately dumping their stock.


Or they could just care less about the family buisness and now that Daddy is gone she's gonna get that boob job, Lambo and diamond plated grill she always wanted.  More likely however, they are just willing to sell back maybe 5% of their massive holdings.


They are already multi-millionaires, they showed Arakawa and Yamauchi's daughter's home that was being built in Hawaii about 11 years ago in a BBC feature on Nintendo ... they ain't hurting for cash, lets just put it that way. 

The only reason I can see to sell so quickly is if they don't have much confidence in the company going forward and are worried about devaluation of their inheritance. 

It's like Arakawa at least doesn't know a lot about the game business. Yamauchi's son also worked in the game industry for a while too. 

Would they be selling their stock if this was 2007 instead and the stock was on the move upwards? Somehow I doubt it. 

I know they have lots of cash... my point is just that we have no idea how much they are selling.  It could be a big deal, or nothing.



orniletter on 03 February 2014

I was about to make a joke about how someone who played FinalFantasy XIII is well eqipped to spot a trainwreck....

...dammit, too late !



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Aielyn on 03 February 2014
Kresnik said:

I don't get where websites keep pulling this $8.6 billion figure from.

http://www.marketwatch.com/investing/stock/ntdoy/financials/balance-sheet

Cash only - ¥478.76 billion

~ $4.7 billion by my count.  Unless they've made $4 billion somewhere in the past 12 months that I'm not aware of.

That number is outdated, comes from March 2013. The current number for "Cash and deposits" in Nintendo's Q3 report is ¥561.605 billion. And as others have pointed out, that's only the portion of their assets that are literally in the form of cash. When you add the stuff that's easily converted to cash, you get a lot higher very quickly.

Of course, the "$8.6 billion" figure is probably also just as outdated, likely coming from a previous balance sheet with a different exchange rate. But then, the whole point of the number is to emphasise that Nintendo has plenty in the kitty, so to speak.



Soundwave on 03 February 2014

The $8.6 billion number is from last Sept.30th. It's cited in the original article, read the Bloomberg one (an actual business/investing site) rather than the one from the Nintendo fan site.