Konami Voluntarily Delists Itself from New York Stock Exchange

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

155 Comments

[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.

GameSpot may get a commission from retail offers.

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Avatar image for daihideo
daihideo

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Konami is doing some shady THINGS lately. I'm not surprised that they do this...

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Avatar image for alaannn
alaannn

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@daihideo: stoping on a stock exchange that costs them 5 to 10 million a year that only made up 0.29 percent of there stock,why do you have a prob with them stopping

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Avatar image for daihideo
daihideo

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@alaannn@daihideo: It saves them money, also cancelling a big named game. The loss of Hideo Kojima. As the famous Ted once said "Strange things are afoot at the Circle-K.".

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Xristophoros

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@daihideo: insert s**t in "things"

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daihideo

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@Xristophoros@daihideo: I did but GameSpot deleted my other comment ;)

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lukeskyrunner

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Nothing would make me happier in life than to see Konami go bankrupt, it would be the best day of my life to see that company fail.

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G4m1ngOn

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@lukeskyrunner: Do you even realize how many people are having job there?

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lukeskyrunner

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@g4m1ngon@lukeskyrunner: they can alway get another job

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Aeluron1989

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@lukeskyrunner@g4m1ngon: It's not easy to get a job. That said I wonder if Kojima could just make their own company.

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cboye18

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@lukeskyrunner: How old are you, 12?

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lukeskyrunner

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@cboye18@lukeskyrunner: Im 57, i dont see why would you believe im 12

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naughtygamer806

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I see why.

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lukeskyrunner

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@naughtygamer806: A 12 year old doesnt have a real concept of a business, a 12 year old doesnt really know what konami is

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naughtygamer806

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That wasnt apparent in your original post, so yeah i see why someone would beleave that.

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lukeskyrunner

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@naughtygamer806: i dont really see it

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daihideo

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They are doing some shady s*** lately. Love to support Konami but wtf?!

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unknowingreaper

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Silent hill was cancelled I wonder why

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alaannn

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@unknowingreaper: because the people making it no longer worked there

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unknowingreaper

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Why

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alaannn

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@unknowingreaper: they just seemed to fall out,konami prob said keep making metal gear they said no we want to make somthing new so they got fired no one knows yet why they parted ways

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TheSpicyChiken

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This is it, Skyrim mod's you must pay for, even if they stop the damage is done, Kojima leaving Konami = Death of Metal Gear, the plug has already been pulled on silent hill... Figures a horror game about HORROR gets canned!

Another COD clone game this year (titan fall dexus ex duty.)

Next Gen in sub 1080P The golden age of gaming ended a long time ago, now we are in the steady decline into darkness. Publishers scrambling to nickle and dime you at every turn. Remake, after Remaster, after ultimate edition, pre order bonus and micro transactions.....DRM every where you turn.

I'm not looking forward to what is to come.

18 • 
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_Plaguelight_

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@thespicychiken: Bring us back to the days of 16-bit graphics and 360p, when gaming was still made for ENJOYMENT and not graphic whoring.

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alaannn

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@thespicychiken: dont know why remasters bother you just dont buy them

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BDRTFM

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I hate to say it but, all these recent moves cannot be just a coincidence of timing. If I held some of the 97.48% stock in Japan, I'd start quietly looking into dumping some of it. Maybe all of it.

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Unreal849

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@bdrtfm: Their arcade machine business is doing fine. It's just becoming increasingly obvious that Konami just doesn't care about home gaming any more. But buisness-wise, they seem fine.

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LightCola

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Pulling out does save a lot of money kids.

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Empty_Hat

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@lightcola: Yeah, Your parents though so too. And here you are.

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Empty_Hat

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Next thing we know, there will be report that Konami is building huge barbed-wire fence around their HQ. Sigh.

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Khoo1992

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Something wrong is going on...

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cboye18

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@Khoo1992: Something wicked this way comes...

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Moonco

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@cboye18@Khoo1992: I remember that movie lol

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Xristophoros

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i wonder if kojima would be allowed to call his new company "kojima productions" again or if konami will forever own that brand? i mean, it is his name so i'd assume konami doesn't own the rights? well, there is always "kojima studios", "kojima games", "kojima entertainment", "kojima industries" and my personal favourite, "hideo vision" :D

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cboye18

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@Xristophoros: "Kojima nothing" more likely.

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Empty_Hat

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@Xristophoros: He can call it Kojima works. Actually, that is not a bad idea. Kojima. Works.

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xsonicchaos

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@Xristophoros:

You mean like LucasArts?

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Xristophoros

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@xsonicchaos: sure, "KojimaArts" works.

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beowulf1211

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I feel it's a huge marketing gimmick, all of it, from the mind of Hideo Kojima. It's a perfect timing to coincide with MGS V release and he's getting free publicity

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Moonco

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The death of a once mighty publisher

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Avatar image for IanNottinghamX
IanNottinghamX

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Wow they are on a roll arent you Konami? why not announce your joining Isis?

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MJ12-Conspiracy

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With Konami canning Kojima or whatever happened to make him leave and canning Silent Hills and running pretty much every IP they have into the ground or just mismanaging everything Konami is done in my eyes.....

Metal Gear Solid V Phantom Pain will be the last game I grab from em....

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karnis

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@MJ12-Conspiracy: same


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cboye18

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What the fvck are you doing Konami???!!

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xsonicchaos

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Go F yourselves, Konami, you pathetic pricks! You behave like snotty little children, take your damn toys and go home! God, these people are so frikin awkward.

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silversix_

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Kojima should join FROMSOFT.

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Ombus

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kojima should make his company

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alaannn

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they should of delisted years ago if it cost 5 to 10 million and all they traded was 0.29 percent

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Unreal849

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Boo Konami. Booooooo

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cboye18

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@unreal849: *Throws rotten eggs*

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Fartman7998

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@cboye18@unreal849: Ewww.

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alaannn

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@unreal849: why

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Fartman7998

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@alaannn@unreal849: *throws tomato*

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