Forums - Sales Discussion - Nintendo stock for 1.1 billions has been bought by ValueAct and want to make Nintendo as fully digital entertainment Service/ media company EDIT: Add Bloomberg article

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What do you think

This great news for investor 2 4.35%
 
This great news for Nintendo 5 10.87%
 
This bad news for gamer 25 54.35%
 
I don't know how to react to this 12 26.09%
 
Time to buy Nintendo stock 0 0.00%
 
Time to sell Nintendo stock 2 4.35%
 
Total:46
SpokenTruth said:
sethnintendo said:

Unlike a lot of companies Nintendo is still making plenty of money during this crisis.   I don't see why they would even need a capital infusion.  The only thing going bad for Nintendo right now would be their rollout of their theme park sections in Universal parks and I have a feeling that Universal is taking more of hit than Nintendo on that one.   While they might not need it I guess more cash is good?

I hope that guy that shorted Nintendo last year with millions cashed out recently.

Do they need the money?  Probably not.  But one of the natures of being a publicly traded company is that stock investment drives them.

Oh, and ValueAct's total holding is only 2%.  So it's very small overall.

Brain was misfiring due to just waking up so my post wasn't that well put together.  I read the article or at least Reuters article covering the story and it appears that they are more behind the scenes "activist investor" than the ones that bitch and moan publicly what the company should do.  So this is probably why Nintendo doesn't mind and have met with them.  They have met a few times already and ValueAct stated they liked what Nintendo's CEO had to say about direction he plans on taking the company.  So it appears that they might try and influence Nintendo some but doesn't mean Nintendo has to act especially considering they only have 2% of shares. 

So I was negative at first when reading title to article but now I am positive.  I just don't like those activist investors that scream bloody murder on CNBC, Bloomberg, etc..  Almost like they are more trying to self promote themselves than actually help the company.  I just didn't want to see news articles from this investment group demanding Nintendo to change things how they saw fit and since they are behind the scenes I suppose we will be spared those articles.



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Cool story. They hold just over 2% of Nintendo's shares, so Nintendo is talking with them, but that's about it.

Besides, if their plans concern monetization similar to the likes of Activision and EA, then they'll be told to get lost quickly - in a polite manner because the Hiroshi Yamauchi days are a thing of the past. Such monetization models stand in strong conflict with Nintendo's long term strategy where consumer goodwill plays an essential part.



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Nice to hear that they wanna to make Nintendo big on entertainment business, but using EA and Activision as parameter doesn't smell well. 

 We can all hope that their focus is beyond the console game industry, instead of changing its core. Not that I think that they can possibly change Nintendo's strategy in a radical way, but to at least having constructive ideas during their meetings

Last edited by 160rmf - on 22 April 2020

 

 

We reap what we sow

Better online services for Nintendo - I'm all for it.
Using EA and Activision as models (as suggested by the company) - HELL NO!



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Using EA and Activision tells us one of two things: that they either know nothing of the videogame industry, or they know EXACTLY what's going on in the industry. Neither option is good.



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Dead on!!!



steve

If any of this results in Nintendo getting their act together with anything online then all fans should be on board with this.

I have great respect for a Nintendo but we all know their online is stuck in 2004 and them not having a universal online shop of hundreds of their first party games from generations past is a missed opportunity.



 

 

HollyGamer said:

 a big corporate Value act ( which is on the boards of Microsoft and Adobe) has been buying Nintendo stock since 2019 and now they are want to help Nintendo to become a largest Digital entertainment service company

They want to push certain agenda on Nintendo as company to a certain direction which is going to make Nintendo as fully digital entertainment service and becoming the largest one 

Some analyst said it's a good take,  so this could provide valuable guidance as Nintendo continues its digital transformation in software and services.

https://www.bloomberg.com/news/articles/2020-04-22/activist-places-1-billion-bet-on-nintendo-becoming-media-giant

I think the title of the thread "want to make Nintendo as fully digital entertainment" is misleading.  I read the tweets and the linked article and couldn't find that phrasing anywhere.  

"Nintendo’s future is bright, ValueAct wrote in its letter, adding there is potential for growth both in the software business and room for the company to transform itself into a broader entertainment company." 



i agree nintendo is lagging behind with their digital services



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Well going all digital are the publishers wettest dream. The sooner the better for them. With Nintendo going all digital would probably make their dreams come through faster. Cant really think of many other that would have more impact except for Sony. But they would follow suit pretty quickly after Nintendo Im guessing.