Nintendo Rises After Buying Stake in Web Company Dwango

Nintendo Co., the creator of the game franchises Mario and Zelda, closed at the highest since August after buying a stake in Dwango Co., a company that provides content through mobile phones.

The stock rose 5.15 percent to close at 13,070 yen in Tokyo, the highest since Aug. 6. Dwango shares surged 21 percent after the video game company bought 612,200 Dwango shares, according to a statement filed with the Tokyo Stock Exchange today.

Nintendo isn’t planning to distribute games through Dwango’s video delivery system Niconico, Nintendo spokesman Yasuhiro Minagawa said. Nintendo currently promotes its games through the system, he said.

Nintendo acquired the shares at the request of Dwango Chairman Nobuo Kawakami for his personal funding needs, said Minagawa.

Nintendo, which posted a net loss of 8 billion yen ($81 million) in the three months ended Sept. 30, maintained its projection to sell 9 million Wii U units and 18 million 3DS devices in the full fiscal year, the company said last month.

Before it's here, it's on the Bloomberg Terminal.