Konami Voluntarily Delists Itself from New York Stock Exchange

It's a cost-saving move, video game analyst says.


Silent Hills
Metal Gear Solid V: The Phantom Pain

[UPDATE] More details about Konami's decision to delist itself from the New York Stock Exchange are available below by way of government filings. Konami provided the following explanation for the move:

"The Company listed its ADSs on the NYSE in September 2002 mainly to diversify its opportunities for fund-raising and to raise the visibility of the KONAMI brand. Since then, the Company has made efforts to enhance disclosures for shareholders and investors with the goal of deepening their understanding of the Company, in addition to complying with the disclosure requirements of U.S. securities laws and regulations, providing consolidated financial statements in accordance with accounting principles generally accepted in the United States ('U.S. GAAP'), and establishing internal controls in accordance with the Sarbanes-Oxley Act of 2002.

Meanwhile, the external environment has significantly changed as indicated by the increases in trading volume of Japanese stocks through stock exchanges in Japan by overseas investors due to the internationalization of the Japanese financial and capital markets, as well as the narrowing of the gap between U.S. and Japanese disclosure standards with respect to financial reporting due to a series of amendments to Japanese laws and regulations and accounting standards.

While the Company believes the initial objectives of the U.S. ADS listing were mainly achieved, it has judged that the continued listing on the NYSE is not economically justified, taking into account the market changes as stated above and the fact that the trading volume of its ADSs on the NYSE accounts for only a small fraction of the total trading volume of its shares. Therefore, the Company has decided to apply for voluntary delisting of its ADSs from the NYSE and for termination of registration of its ADSs with the U.S. Securities and Exchange Commission (the 'SEC') under the Exchange Act."

The original story is below.

On the same day that Konami officially confirmed that Silent Hills is no longer in development, the company has announced [PDF link] that it's voluntarily delisted itself from the New York Stock Exchange. The company's American Depositary Shares are no longer listed as of April 24.

No Caption Provided

Konami has also announced that it's filed a Form 15F with the Securities and Exchange Commission (SEC) to terminate its obligation to report quarterly financial earnings in English. However, the company said it will continue to do so in an effort to "ensure that [Konami's] overseas shareholders and investors will continue to have appropriate information."

Konami's deregistration with the SEC will become effective July 12, while reporting obligations will come to an end on July 23 (though as mentioned above, Konami will continue to make this information available in English).

As for why Konami is doing this, the publisher said in its Form 15F that, over the past year, 99.71 percent of the company's common stock was traded in Japan and the United Kingdom. By region, Japan accounted for 97.48 percent, while the UK made up 2.23 percent, leaving just .29 percent for the US.

Wedbush Securities analyst Michael Pachter told GameSpot today that Konami's decision to delist itself from the NYSE is a "cost-saving move." He estimated that taking this action will save the company about $5-$10 million per year. "The stock doesn't trade much [in the US], so it probably occurred to them that it wasn't worth being listed [in the US]," Pachter explained.

Konami will report earnings for its latest final period next week on May 8. It's possible that the publisher will shed more light on why it's decided to delist shares from the NYSE during this event.

In other recent Konami news, the publisher is reportedly in the midst of a power struggle with veteran developer Hideo Kojima. He's expected to leave Konami after Metal Gear Solid V: The Phantom Pain ships in September.

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Avatar image for sonicblast19

If Kojima's departure has made such an impact to the company,it deserves to close down because bitch ass pussies like these have no place in the gaming industry.

Avatar image for kaya4114

Everyone I see is going "I think (Nintendo/instert game company here) should buy Konami's (insert random IP here)"

meanwhile I'm just going, "Does this mean we can have our In the Groove Arcade back now? ITG THREEEEEEEEEEEEEEE"

Avatar image for Ripper_TV

Major freaking cleansing at KONAMI. Some new management we didn't hear about has arrived.

Avatar image for Ripper_TV

JUST what in the HECK is going on in there???

I wanna know so bad and I'm pretty sure in time we'll see a documentary about their dealings in 2015.

Avatar image for Ayzed

bye bye konami

Avatar image for blackothh

less stock holders that demand free money = better games.

Avatar image for Atzenkiller

I still don't see why a japanese company would decide to go through the NYSE instead of the Japanese one. Sounds like Konami just had huge expectations after the MGS series really hit it off and thought they might become like Apple or something. Only to then become completely depended on MGS with nothing else to show.

Avatar image for Dav_id83

Konami to be gone by 2016 maybe earlier

Avatar image for UnbornCorpser

@Dav_id83: Another THQ fiasco? Even though I don't have much feelings for Konami I wouldn't want them to go out.

Avatar image for sonicblast19

@UnbornCorpser@Dav_id83: If one's man departure had such impact on the company they deserve to be gone.

Avatar image for hansolo1138

Damn, I missed old school Konami games. From Contra, Gradius, Castlevania, Life Force on the NES to Batman and Teenage Mutant Ninja Turtles on the SNES. Those games back then were so great. And who wouldn't forget Jackal. Man, that game was an underrated classic.

Avatar image for RossRichard

Good, it's a junk bond at best anyway.

Avatar image for wexorian

None would had bought it anyway, it's sinking ship they did it to themselves, Another great company goes to the bottom of the sea.

Avatar image for JRLennis

I don't understand this move. The total value of their American stock is much lower than the potential PR hit they could take by de-listing at this time. Right now it looks like the whole company is teetering on the edge of disaster. The LAST thing you want to do right now is lower consumer and investor confidence even further.

Avatar image for bith_the_black

Seems like the bell is tolling for Konami

Avatar image for luert

an understandable move, they have to make cuts somewhere, and I fairly agree with their decision considering the numbers, I'm also very impressed they had such poor sale in the usa

Avatar image for jyml8582

After failed to preorder collector's edition for Witcher 3, Arkham Knight Bat Mobile edition, and Nightmare edition for Bloodborne, I was Finally able to get my preorder for MGSV Collector's edition, and this happens.

'Tis not a good year for me to acquire CEs. :(

Avatar image for returnofsoma42

I think Nintendo should swoop in and buy off Konami. I would hate to see this company go out of business and with Nintendo being one of the few companies that is debt free and their market cap being 24 billion they could save Konami. But that's just my thinking. What do you all think?

Avatar image for RossRichard

@returnofsoma42: No reason to buy Konami. All their good staff has left.

Avatar image for aeluron1989

@returnofsoma42: I doubt Nintendo would even utilize Silent Hill. That's the thing :/

Avatar image for hystavito

@aeluron1989@returnofsoma42: Not that I think Nintendo would ever consider it, but I have to join the no side. Nintendo owning Konami would just be a waste of most Konami IP.

Avatar image for superbuuman

@hystavito: sadly very true. :P

Avatar image for xcollector

@hystavito@aeluron1989@returnofsoma42: Thats because Nintendo isn't smart enough to do what Disney does. Disney releases their non family friendly kiddy stuff under different brand names not to tarnish their Disney image. Nintendo could do the same but they're not smart enough.

Avatar image for JRLennis

@xcollector@hystavito@aeluron1989@returnofsoma42: Nintendo is too proud to release a product under a name other than their own. Intelligence has nothing to do with it.

Avatar image for solid_snake1461

After MGS5, I'm done with Konami anyway.. They can go bankrupt or whatever.

Avatar image for wexorian

@solid_snake1461: MGS5 release date changed to unknown few days ago, keep waiting #Half life 3, Last Guardian.

Avatar image for solid_snake1461

The source is? Just check on their website, still Sept 1.

Avatar image for aeluron1989

I wonder what Game Studio/Publisher could handle Konami. Hopefully not EA or Activision.

Avatar image for Monsterkillah

Wow what going on with konami

Avatar image for Oogazi

so much konami news these days

Avatar image for deactivated-57be1a3a68c8e

I just finally got around to playing Lords of Shadows 2. I hope we get more CastleVania games. I'd love for a Hard Corps sequel too, that was a great game. Delisting can sometimes be good. I wish WWE would delist and get back to making good shows, not just trying to please stockholders.

Avatar image for chuckles471

I think the thing that probably hurt them the most, was losing the crown of "best football" game. Not Metal Gear, not Silent Hill, not Castlevania, not Suikoden but PES.

They have been hemorrhaging millions of sales year on year to FIFA since 08. And it was a yearly series that used to sell big.

Avatar image for peefarts

I would delist my company too if it were a failure to it's investors and core customer base. This is actually one of the smartest moves his company has made in a decade.

Avatar image for JRLennis

@peefarts: In a fundamental sense, perhaps. But the timing of this move - right on the heels of the Silent Hills cancellation and the Kojima fiasco - couldn't be worse. It will only further erode confidence in the company and cause more people to panic and jump ship. I'll be very curious to see which direction their Japanese and UK stock takes tomorrow.

Avatar image for lukey52

Konami had such a vast library of ps1/ps2 games and many huge hits too. Then you look at the ps3 and they somehow released just over 30 games in the west in 9 years of which 8 were the yearly PES releases lol

Avatar image for shinta125

@lukey52: Go back further and they had even more through the 8-bit and 16-bit eras. I miss them all.

Avatar image for sargentpsgamer

Dibs on either Sony buying them as a whole (Well just the Konami video game branch) or their licenses hit the market and Sony/MS fight over the MGS license.

Excuses, excuses. They don't D-list themselves just because the market change and trading taking place in Japan, they couldn't afford it and they are going belly up, they just don't want to admit it.

Avatar image for JRLennis

@7tizz: They have lots of things of potential worth, but most of those IP's haven't been utilized in years. And there hasn't been a great Castlevania game for almost as long.

I agree that Sony would be the best fit for Konami IP's, but like you say, Sony is in no condition to make acquisitions due to the weakness of the parent company. It's possible they might make a move just before the Konami ship goes under and nabs their IP's for next to nothing, but it's still a big risk.

I can't fully rule out Nintendo, though. Nintendo is almost synonymous with Konami's classic IP's. I don't see MGS or Silent Hill being good fits for the big N. But Castlevania, Contra, and Suikoden? Absolutely.

Avatar image for Monsterkillah

You underestimate sony financial power

Some of the konami ip like metal gear solid and pro evo are very identical and popular on playstation...i can see mgs become ps exclusive again in the future

Every ps fans knows that title like mgs and sillent hill are worth it and valuable

Avatar image for tarantani

Contra, castlevania, pro evo soccer, silent hill, dance dance revo, suikoden, mgs... just to name a few

Avatar image for Barighm

@7tizz: They have some very popular sports franchises that do well in their region.