Bandai/Namco Merger good for Nintendo?

[OICAspork]

For those that missed it, Namco and Bandai are merging:

http://ds.ign.com/articles/609/609271p1.html

This story reminded me of the Nintendo Bandai purchase about a year and a half ago... err... quick seach turned up this...

http://www.geek.com/news/geeknews/2003Nov/bga20031117022708.htm

Given the fact that Nintendo is one of the top 10 share holders in Bandai (at least pre-merger) it seems like that should at least give them enough voice in the company to prevent themselves from getting shafted when it comes to things like exclusives with the other console makers.

 

[one]

http://www.beyond3d.com/forum/viewtopic.php?t=22481

 

[Evil_Cloud]

Nintendo gains nothing through this merger, no 'influence' over Namco or whatsoever.

 

[Titanio]

Nintendo gains nothing through this merger, no 'influence' over Namco or whatsoever.

It can't hurt to have an investment in the company, particularly if they keep increasing it as they plan to. I don't know if they'd ever be in a position to put someone on the board though..

Nintendo's relations with Namco are pretty decent as it is, though. Namco gave them some pretty decent support, and there were the "creative collaborations" to boot (most recently with Mario Kart, which shows the relationship is still getting stronger). Hopefully they'll get some good support from Namco right from the start with Revolution.

 

[Evil_Cloud]

Nintendo gains nothing through this merger, no 'influence' over Namco or whatsoever.

It can't hurt to have an investment in the company, particularly if they keep increasing it as they plan to. I don't know if they'd ever be in a position to put someone on the board though..

Nintendo's relations with Namco are pretty decent as it is, though. Namco gave them some pretty decent support, and there were the "creative collaborations" to boot (most recently with Mario Kart, which shows the relationship is still getting stronger). Hopefully they'll get some good support from Namco right from the start with Revolution.

Increasing? The available public stock is pretty minimal, and all the private stock is owned by both companies/a few people inside Namco/Bandai. If Bandai Namco isn't selling (and they won't), Nintendo won't increase anything.

This is the very same reason why for example Tecmo can't possibly be bought out. They'll refuse any offer, and they keep nearly all of their stock private.

 

[Titanio]

Increasing? The available public stock is pretty minimal, and all the private stock is owned by both companies/a few people inside Namco/Bandai. If Bandai Namco isn't selling (and they won't), Nintendo won't increase anything.

This is the very same reason why for example Tecmo can't possibly be bought out. They'll refuse any offer, and they keep nearly all of their stock private.

Not sure how they intended to do it, all I know is that it was reported that Iwata wanted to make Nintendo the second largest shareholder in Bandai. I'd say they know the other investors in Bandai (which prompted buyout speculation), and could probably try and come to arrangements with them, if public stock is limited..

 

[Evil_Cloud]

Increasing? The available public stock is pretty minimal, and all the private stock is owned by both companies/a few people inside Namco/Bandai. If Bandai Namco isn't selling (and they won't), Nintendo won't increase anything.

This is the very same reason why for example Tecmo can't possibly be bought out. They'll refuse any offer, and they keep nearly all of their stock private.

Not sure how they intended to do it, all I know is that it was reported that Iwata wanted to make Nintendo the second largest shareholder in Bandai. I'd say they know the other investors in Bandai (which prompted buyout speculation), and could probably try and come to arrangements with them, if public stock is limited..

There's one person at Bandai who owns the largest chunk of all Bandai stocks, being the CEO Masayuki Matsuo, heir of the family that founded Bandai. He's not eager to sell, so Nintendo cannot purchase any more stock. This is well over 60 percent, between 70 - 80 percent even I think. Nintendo had around 20 percent (now much less).

Mind you this merger could always fail. Funny though, Namco and Bandai are both 'rejected'. Sega wanted to merge with Bandai, but Bandai cancelled the deal and regretted this later on. Namco asked Sega to merge, but Sega didn't want to.

 

[Titanio]

There's one person at Bandai who owns the largest chunk of all Bandai stocks, being the CEO Masayuki Matsuo, heir of the family that founded Bandai. He's not eager to sell, so Nintendo cannot purchase any more stock. This is well over 60 percent, between 70 - 80 percent even I think. Nintendo had around 20 percent (now much less).

Last I heard their share was 2.6% (and with that they were the 9th largest holder). So even if up to 80% is tied up and not for sale, there's still room for growth in that investment You could be the second largest shareholder (which was their aim) with a relatively small piece of stock (e.g. 10-20%)..

 

[Evil_Cloud]

There's one person at Bandai who owns the largest chunk of all Bandai stocks, being the CEO Masayuki Matsuo, heir of the family that founded Bandai. He's not eager to sell, so Nintendo cannot purchase any more stock. This is well over 60 percent, between 70 - 80 percent even I think. Nintendo had around 20 percent (now much less).

Last I heard their share was 2.6% (and with that they were the 9th largest holder). So even if up to 80% is tied up and not for sale, there's still room for growth in that investment You could be the second largest shareholder (which was their aim) with a relatively small piece of stock (e.g. 10-20%)..

No I thought they had that 2.6% and increased it to 10 - 20%...