Activist investor ValueAct Capital Partners LP has built a stake of over $1.1 billion in Nintendo , according to a letter seen by Reuters, a bet that digital software distribution and the development of new entertainment products will fuel growth at the Japanese consumer electronics company.
BOSTON - ValueAct, which first began buying the stock in April 2019, grew the position in Nintendo, known for its gaming consoles and for having turned characters like Mario and Donkey Kong into international hits, during the stock market sell-off in February and March, according to the letter sent to its investors.
San Francisco-based ValueAct said it has had several meetings with members of Nintendo management and that it believes in the vision the company’s chief executive, Shuntaro Furukawa, has shared with ValueAct and with others. U.S. activist investors are increasingly looking to target Japan’s cash rich companies and this marks the third investment ValueAct has made in Japan in the last four years.
Additionally ValueAct said the company has a chance to become an entertainment company. “We believe Nintendo will be one of the largest digital media services in the world, in a category with the likes of Netflix, Disney+, Tencent Interactive Entertainment and Apple Music,” the letter said. While top management in Japan has been historically wary of brash U.S. investors, ValueAct said its experience at Nintendo has been different. Management has been “welcoming to those who take the time to understand the unique Nintendo way,” it said in its letter.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Halliburton books $1.1 billion charge, slashes spending by 50%U.S. oilfield services giant Halliburton on Monday reported a $1 billion first-quarter loss on charges and outlined the largest budget cut yet among top energy companies as U.S. crude futures plunged to two-decade lows.
Read more »
Japan stimulus package boosted to $1.1 trillion due to cash payouts: draftJapan's economic stimulus package will be revised to 117.1 trillion yen ($1.086 trillion) from 108.2 trillion yen, boosted by the expansion of a cash payout scheme aimed at lessening the pain from the coronavirus outbreak, a draft obtained by Reuters showed.
Read more »
Read an excerpt from Stephen King's newest book 'If It Bleeds'Read on for an excerpt from If It Bleeds, a novella collection comprised of four haunting stories by Stephen King.
Read more »
Exclusive: Joe refuses to back down from the Black Hole case in 'The Flash' clipWatch an exclusive clip from 'The Flash' season 6, episode 16, 'So Long and Goodnight.'
Read more »
Model Guinevere Van Seenus Talks Isolation Amid Coronavirus | V MagazineIsolation | Photographer RowanPapier returns, having captured model, photographer and jewelry designer GuinevereVanSeenus, in a visualization of how the vast majority of the world are responding to the pandemic:
Read more »
'Pump Rules': It's Kristen vs. Stassi at Witches of WeHo Wine PartyET her your exclusive first look at the Witches of WeHo's wine party face-off.
Read more »