This happened back in February. Basically what you are seeing is the grandson is moving their holdings to their family run management company as a way to protect stock value over what will be a rough times ahead for Sega. Sega boasts a PE ratio (price to earnings) of around 75 (avg) across markets. What that means is the price of the stock is overvalued compared to their earnings. This is not good. Low PE = Good. High PE = Bad. So in anticipation of rough times ahead, they are ensuring certain shares will not be sold, which would continue to drive the stock price down for current shareholders.
A.Soldier, who explained himself a bit harshly did have a point. He is young. He is also third generation. There is an old adage in business, First and Second generations succeed, and third generation of family businesses usually fails. When you have a young CEO like say Zuckerberg, investors will have more faith in him as the creator of a product than a young guy who got the job because of a family relation. Typically, young men do not make good CEOs of MASSIVE companies like Sega(450 Billion market cap) because they simply lack experience. Sega is losing money hand over fist. Stock prices are overvalued across markets and Sega's market cap will drop. Investors will see blood in the water and Sega will have to continue to restructure before they can right the ship.
This seems like phase one. I think I saw they weren't planning on firing or shutting projects down but that is usually the next step.
*Addition: I forgot to mention voting rights. Basically the largest shareholders have the most voting power on company decisions. When a company goes public, they are giving control of the company to the 'investors' or executive board. Moving their shares into their private holding company made it the largest holder of total votes. Helping to ensure the business stays in the family.
**What this means for Relic: *If* Relic is profitable, which I ASSUME in COH2's case, it is - Then they probably wouldn't have much to worry about. If anything would change, my guess is it would be some personnel consolidation type things but they would continue to operate and develop. Sega isn't traded in US markets so there really isn't much data to look at (that I could find) other than very vague financials from Sega so its difficult to give a more accurate assessment. I don't really keep up on Relic personnel changes but its possible this already has occurred/occurring since the initial report in Feb 2018.
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Register Time: 14 Nov 2013, 01:47 AM
Broadcast: https://www.twitch.tv/gdotdot
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Register Time: 14 Nov 2013, 01:47 AM
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