Nintendo acquires JESNET (a retail distributor)

#1
Update 5: The exact transaction is that Nintendo now owns 70% of JESNET for $47 Million USD and will finalize next April when the next Fiscal Year begins.

Dr. Serkan Toto said:
1) Nintendo will acquire 70% of Sapporo-based JESNET for US$47 million+make it a subsidiary next April (when the new fiscal year starts).
2) JESNET has been distributing physical Nintendo products in Japan over the last years, was founded in 1952 and has 80 employees.
3) JESNET will also work together with another company called AJIOKA, which is in the video game wholesale business. So the NX can come ;).
4) The goal for Nintendo is to tightly control the entire value chain from developing video games to selling them, at least in Japan. /end
Update 4: Good English summary here:

http://www.perfectly-nintendo.com/nintendo-announces-subsidiriazation-jesnet-distribution/

Update 3: They seem to be a retail distributor specifically?

Update 2: Info quote:

Background for the Subsidiarization and Acceptance of Assignment of Business

As a manufacturer of video game systems, Nintendo is committed to bringing smiles to people across the world through products and services. To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience.

At the same time, JESNET and AJIOKA have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network.

This subsidiarization and acceptance of assignment of business will unify Nintendo's product development acumen with JESNET's and AJIOKA's robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion. This means that Nintendo will have an integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service. These steps are intended to strengthen the overall competitiveness of the Nintendo group and increase its corporate value.
Update: Official English PDF:

https://www.nintendo.co.jp/ir/pdf/2016/160825e.pdf

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Yeah, this happened.

Just caught wind of it on twitter and googled, here it is:

http://www.4-traders.com/NINTENDO-C...ance-of-Assignment-of-Business-from-22952148/

To Whom It May Concern

August 25, 2016

Listed Company Name: Nintendo Co., Ltd. Representative: Tatsumi Kimishima

Representative Director and President

(Code Number: 7974 First Section of the Tokyo Stock Exchange)

Contact Person: Yutaka Takenaga

Deputy General Manager

Corporate Analysis & Administration Division (TEL 075 - 662 - 9600)
Notification of the Subsidiarization of JESNET Co. Ltd. and the Acceptance of Assignment of Business from AJIOKA Co., Ltd.

Nintendo Co., Ltd., (HQ: Kyoto Minami-ku; Representative Director and President: Tatsumi Kimishima; hereinafter "Nintendo") would like to announce that it has passed a resolution to acquire the stock of JESNET Co. Ltd. (HQ: Sapporo, Hokkaido; Representative Director and President: Jou Suzuki; hereinafter "JESNET") and make it a subsidiary of Nintendo at the August 25, 2016 meeting of the Board of Directors. Furthermore, on the same day as JESNET becomes a subsidiary of Nintendo, JESNET will accept the assignment of the video game wholesale business from AJIOKA Co., Ltd. (HQ: Nishio, Aichi; Representative Director and President: Gentarou Ajioka; hereinafter "AJIOKA"). JESNET and AJIOKA have also agreed to this resolution.
And LOADS more in the link.

Possible connection to that mysterious $100 Million non-gaming acquisition we heard about?

Still trying to figure this out. Seems like Nintendo worked with JESNET for years.
 
Apr 5, 2016
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#6
So if I understand this correctly, this was what they manufactured?

Nintendo game systems, game system accessories, game software,

card games, other amusement business
I just can't see any more specific details in the article.
 
Aug 5, 2013
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#11
It's on the site.

Background for the Subsidiarization and Acceptance of Assignment of Business

As a manufacturer of video game systems, Nintendo is committed to bringing smiles to people across the world through products and services. To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience.

At the same time, JESNET and AJIOKA have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network.

This subsidiarization and acceptance of assignment of business will unify Nintendo's product development acumen with JESNET's and AJIOKA's robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion. This means that Nintendo will have an integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service. These steps are intended to strengthen the overall competitiveness of the Nintendo group and increase its corporate value.
 

L~A

Member
Jan 19, 2013
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#15
Possible connection to that mysterious $100 Million non-gaming acquisition we heard about?

Still trying to figure this out. Seems like Nintendo worked with JESNET for years.
No. This was announced today, and will take effect in April 2017.

Besides, JESNET is going to be a distributor. and it's Japan-only.

It's nothing really exciting, unfortunately (well, not for the majority of people, I guess ;))
 
Apr 5, 2016
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#25
No. This was announced today, and will take effect in April 2017.

Besides, it's got nothing to do with tech, JESNET is going to be a distributor.

It's nothing really exciting, unfortunately (well, not for the majority of people, I guess ;))
So Nintendo wants to fortify their distribution networks in Japan, from the looks of it.
 
Apr 5, 2016
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#36
Keyword from the PDF,
5. Future Business Projection
This subsidiarization and acceptance of assignment of business will not have an effect on results for this
fiscal year. Nintendo will begin including the effect on results in the earnings forecasts for the next fiscal year
and later.
Now I just realised the timing of this. The sale of the Seattle Mariners was confirmed for $661 million. Nintendo uses that to fund buying those distributors.
 
Apr 5, 2016
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#39
To add more to the discussion. There have been times when Nintendo has had low stock of consoles and huge hitting software in Japan, so possibly this could help make things easier for them having direct access to that distribution network to observe things, rather than have retailers notify Jensen and then Jensen notify Nintendo etc.

I'm just imagining this as the case though, there's other reasons like they no longer have to pay fees to the distributors since they own them. lol
 

L~A

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#45
So Nintendo wants to fortify their distribution networks in Japan, from the looks of it.
It's more just that, For games, they now have almost everything internally, from game development to actual disitribution. Even debugging is internet with Mario Club.

For consoles it's a bit different since they're manufactured in China (and it's most definitely not going to change any time soon, not with how cheap labour is there).
 
Apr 5, 2016
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#47
It's more just that, For games, they now have almost everything internally, from game development to actual disitribution. Even debugging is internet with Mario Club.

For consoles it's a bit different since they're manufactured in China (and it's most definitely not going to change any time soon, not with how cheap labour is there).
I'm guessing you meant internal but autocorrect happened, like me usually.

Yes, iirc GameCubes were manufactured in Japan but then it switched to China when Wii came out.

So I guess this is fortifying their whole base of operations as you say, by making everything internal. No wonder leaks happen rarely in Japan for Nintendo.

Edit:
Hero of Legend said:
Update 5: The exact transaction is that Nintendo now owns 70% of JESNET for $47 Million USD and will finalize next April when the next Fiscal Year begins.
Wow, I wonder if they are going to make any other acquisitions. They made quite a bit on the sale of their partial stake of the Mariners for $661 million, they still have change for more things.
 
#49
Wow, I wonder if they are going to make any other acquisitions. They made quite a bit on the sale of their partial stake of the Mariners for $661 million, they still have change for more things.
Did we ever get the amount Nintendo spent on Monolith Soft? Can't find that info at the moment. They did buy 80% initially with BN retaining 16%. Nintendo eventually bought that 16% (the other 4% I guess is scattered).
 
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#50
Did we ever get the amount Nintendo spent on Monolith Soft? Can't find that info at the moment. They did buy 80% initially with BN retaining 16%. Nintendo eventually bought that 16% (the other 4% I guess is scattered).
Nintendo owns 96.6% of Monolithsoft. The remaining 4% is split between Sugiura (1.25%), Takahashi (1.25%), and Honne (0.83%). None of it is scattered.