Capcom has recently announced that they have not renewed their company?s takeover defense. The takeover defense is a countermeasure that was instated in 2008 and prevents Capcom from falling under the control of another company should a third party decide to buy a huge amount of its stock.
The practice of blocking stock purchase takeovers is actually a very common practice among companies. Six years ago, Capcom instated this countermeasure after a shareholder vote to block third parties from taking control by putting their stock purchases through a meticulous approval process.
Things are changing for Capcom now. The decision to not renew the company?s takeover defense was made during Capcom?s most recent investor meeting due to a lack of votes in its favor. This opens the company to a potential buyout should there be a third party willing to spend the money to acquire a majority of Capcom?s stock. If, by chance, you?re looking for a gaming company and have the money to back it up, you may want to look into Capcom?s stock.
According to a press statement from Capcom, they mentioned that they will continue to try and enhance their corporate value as well as the interest of their shareholders. Should there be a case where a third party decides to purchase large scale stock, Capcom?s management mentioned that they would: ?react to make necessary measures within the admissible limits of applicable laws and regulations.? If this scenario does happen, Capcom would also provide enough time for the board of directors and shareholders to examine the purchase ?to react accordingly.
This decision could be a sign that Capcom is going through some tough times. It can be seen as a big “for sale” sign and big rival game companies may consider trying to purchase the company?s majority stock to be able to get access to great IPs like the Street Fighter series as well as the Megaman series. Just recently, Capcom?s Street Fighter series executive producer and head of consumer games development Yoshinori Ono resigned from his position as director of Capcom Vancouver.
Photo Source: Capcom website
Other stories you may be interested in: