Hiroshi Yamauchi's family is looking to sell ts company shares, with Nintendo preparing to buyback $1.1 billion worth tomorrow.
Following Nintendo's financial reports that were less than stellar, Hiroshi Yamauchi's family, who inherited the former Nintendo CEO's shares when he passed away last year, now has a "desire to sell" their shares in the company. In a report on Bloomberg, it states Nintendo will purchase as many as 9.5 million shares, or 7.4% of its outstanding stock at 12,025 Yen apiece, with the buyback said to total 114.2 billion Yen or $1.1 billion in US currency.
Yamauchi's inheriting family, comprised of four of his children, owns 10% of company stock. It's not currently known how many of the founding family's stock will be unloaded, with Nintendo spokesman Yasuhiro Minagawa saying, "We are not in a position to know how much shares the Yamauchi family will sell."
To take responsibility for the Wii U's abysmal sales, Nintendo CEO Satoru Iwata and other executives have agreed to have their salaries reduced. Even with the pay cut, Iwata is not done looking to remedy Nintendo's business woes, as the company CEO also revealed just a few days ago that he is considering mergers and acquisitions for Nintendo.
While Nintendo's stock is presently taking a hit, the video game company has $8.6 billion banked in terms of cash and equivalents, and has no debt as of September 30, 2013.
Should Nintendo fans be worried? With the way things have been swinging, recent developments might be a cause for concern, but we don't know for sure until it happens.