Visual Arts is changing presidents! And M & AAA, well, I'm a little sad, but I guess that's just the passage of time, right? Yes, Maeda is great!
Wow, DD (due diligence) was a lot of work!
What is Due Diligence?
Due diligence (DD) is the process of conducting a thorough preliminary investigation of a company from various perspectives, including legal, financial, and labor issues, prior to a stock transfer (M&A), to determine whether or not there are any problems with the company. There were hundreds of questions, and we had to answer each of them with the documents attached.
We are a company of less than 70 people, and there are only a limited number of people who can handle the work.
Then the world's four largest accounting and auditing firms and the world's leading law firms all came asking questions, so I struggled a lot.
I guess that's what it means to transfer shares to the world's best company, right?
So, it's been a while, everyone. I am President Baba (Giri), still just barely the president of Visual Arts Inc. I have an important announcement to make to you all today, and I decided to update the VA blog.
This time it's not so much about contents, but I have something I want to report firmly to you all about the future of Visual Arts, so please bear with me for a moment~.
■Baba is retiring
In conclusion, I am retiring as president and transferring the shares of Visual Arts Co.
It may sound like management is not doing well, but that is not the case.
As you know, thanks to the efforts of Hebban and his staff, our company is in the best shape it has ever been in its 33-year history, with record profits for the fiscal year ended June 30.
So, as to why I am retiring, this is already clear, because we all inevitably have a "life span.
If I could, I would like to run this wonderful company forever. But as you can imagine, I am now 63 years old. Of course, I'm in good health now, and I still want to work, but I've reached an age where anything can happen at any time.
If something were to happen to me, although our company is a joint-stock corporation, it is a private company in which the Baba family owns 100% of the shares, and since there is no suitable successor, there is no other choice but to close the company.
If that were to happen, not only the activities and future of the company, but also the rights to our wonderful works and music would dissipate. No, that must be avoided at all costs.
In such a case, the right way out for a stock company is to go public. That way, even if something happens to the president, the company's management will be relatively safe because the shares are held by a large number of people. Of course, there are many excellent companies that do this, and it is not impossible for us to aim for the same thing, but due to our past easygoing management, it is unlikely that we will be able to do so in time.
So the next best thing would be to have a solid "parent company of a publicly traded company" (......).
That would finally remedy the situation where my health is the biggest risk to business continuity. This thing is legally called a "transfer of shares," which means that the more corporate the owner of the company is, and the bigger the company, the more secure the future will be. Of course, Visual Arts will remain Visual Arts.
■The partner is the world's number one entertainment company
I have therefore carefully selected and approached several companies and potential parent companies.
After much deliberation and selection by our staff, we finally reached an agreement with the world's number one entertainment and game company, Tencent Holdings.
Tencent Holdings Ltd.
That is why Visual Arts Inc. has decided to transfer its shares to this global company, i.e., to become a subsidiary, in anticipation of my retirement and future.
Thoughts of the Staff
Well, I can say now that during this period, we considered and negotiated with a great variety of companies as candidates.
We did not go through any formal M&A middlemen, but rather, my staff and I considered and selected the best company for the future of Visual Arts.
The criteria were that the company should be able to make the most of the concept of "creating IP that can be used around the world," and that the company should love our contents and company as much as possible, and be able to transmit our contents to the world from a global viewpoint.
And, of course, the final selection was made by our senior creators and executives after many interviews and a lot of courage.
So I can say with confidence. I can say with confidence that this is the result of a thorough search for a situation in which our beloved contents and music will be effectively managed without loss or dispersion after my death, and the company will continue as it has in the past.
■What we are aiming for from now on
So, Visual Arts will remain Visual Arts (this is important), and the staff will be able to continue doing what they want to do.
Of course, as I said before, what we need to do is to "create world-class IP," so we will continue to do what we have been doing, such as visual novels, kinetic novels, mobile games, animation, live performances and events, etc., but I am sure that this will I think it's going to be great.
After all, the parent company is said to be the world's largest video game company (I don't know if it's true or not, it's too big), so it's not going to go crazy, and they will provide the necessary backup for what we do in the future.
Top 10 Worldwide Mobile Game Sales Ranking in March 2023
I think we can do what we want to do, which is to develop content and games that will move you, in a global genre.
Of course, we will be able to secure many talented creators in Japan, treat them better than ever, develop human resources, and present Japanese content to the world. Please keep your expectations high.
Still, VN is a good place to be.
Let me give you a little bit of self-praise here (laugh).
Looking back, for the 33 years since our founding, our content has come to be known as visual novels, and our characterization, worldview, and inspiring stories have been embraced by people all over the world.
It was Visual Arts that revived the almost dead juvenile genre and popularized the inspiring story of a protagonist who overcomes the world and his ordeal through his relationship with a fresh, young girl while facing various problems and struggles.
And Kanon, AIR, CLANNAD, planetarian, Little Busters, Rewrite, Angel Beats! Rewrite, Angel Beats!, Summer Pockets, Prima Doll, LOOPERS, LUNARiA, Stella at the End, Heaven Burns Red, False Alice, and so on, all the way to mobile games. The creation of such emotional storytelling systems has become a unique strength in the world.
When it comes to the characterization and storytelling required in the video game industry, I can say with confidence that no other company has such solid planning capabilities and the right approach to production as ours.
We build up characters, create scenes that attract people to them and make them like them, create a world in which many of these characters play an active role, and eventually the whole story will move them. I believe that we are the best company in the world that can do this with proper recognition.
Well, I myself have just been managing the company with ease by taking advantage of the excellent creators working at our company and have not done much (sorry, I am an incompetent president who could not go public), but what they and the senior creators have built up has become a great asset for our company and will continue to be a great asset for us in the future. I have no doubt that they will continue to play a central role in creating contents that will move you. In other words, the story-based content that started with VN will be developed into various media, and will always be eien nari.
I am very proud of Maeda.
However, it is thanks to our creators that we have become this kind of company, and that our various content from the past has been accepted by people around the world. I must say that I am very proud of Asae.
Well, as I said above, if we had creators like them, we wouldn't have such an easy business (laugh), and I could run the company for many years without borrowing money from the bank or having trouble paying my salary. I am very proud of Asae.
Associate Asaeda suddenly said, "The reason this happened is because of Hebburn,
It's all thanks to Heaven Burns Red, isn't it?
I think he was right, too.
Looking back, it was thanks to Hebban and its users that we were able to negotiate such a favorable deal to transfer our shares. That is why I would like to thank Hebban users, Mr. Yanagihara, the president of WFS, Mr. Kakinuma (current president of GREE Entertainment), and Mr. Shimoda (development manager) for their cooperation with this difficult group, and I would like to continue to put Hebban first and work harder than ever before. I would like to continue to do my best for Hebban and do it even better than before.
Kakinuma P., Konuma D. & Asaeda are great.
■Various Plans in the Works
So, as you can see, we are making great strides in management aspects that have little to do with you, but the substance of what we do (what we do) will remain almost the same.
We will continue to improve the quality of our stories as before, or even more so, and continue to create stories that will continue to move people.
Of course, we are also planning many things to achieve this.
I will leave the details to the new president ↓, but I would like to ask him to announce a new visual novel, an animation, or a new mobile game so that existing users can be assured that we are doing our best.
I think that would be the best way to repay the fans who have supported us up to now, and would certainly be the best way to continue to grow Visual Arts' and Key's content.
■Me?
I would like to explain a little bit about the Shin structure of the company and the future of me, the president of Giri.
Here's what it looks like ↓.
President (PN)
Takahiro Baba (vava shacho) Resigned → Advisor
Genki Amagumo (Toya Okuno) New President
Executive Officers (in order of joining: PN)
Sumiko Takahashi (miriko)
Manabu Okamoto (Kai)
Jun Maeda (准麻枝)
Tomoki Ichinomiya (Kiun Fujii)
Koki Yamada (Konno Sena)
First of all, as for the management structure, I would like to leave it in the hands of the new President Amagumo and the executive officers, while I will remain as an advisor and provide support for a while. I mean, we don't need any more old people.
Of course, I will continue to keep in touch with you all as before, and I will continue to hold events and broadcast advertisements as usual.
But if we take a picture of the president with our arms folded, we will look like a Showa-era black company, and it will be difficult to recruit personnel for the future. And it's hard to recruit new employees in the future.
On the other hand, I would like to keep a close eye on our services, especially for our users and customers, so please don't worry.
Addendum 1
Everything must come to an end. If it is, I want to do it beautifully. That is why I have decided to retire. However, there are things that can come out of this, and after I take some time off, I will eventually return the favor to everyone in the industry who has been so kind to me. In the meantime, I may start a foundation to promote Japanese IP and animation.
Addendum 2
As some of you may have noticed, "Asae ga erai" in the main text is a parody of the afterword to the novel "Bianca Overstudy" by my beloved Yasutaka Tsutsui. I love novels, and when I have free time, I would like to write one. To tell the truth, that has been my dream for a long time.
Appendix 3
The new president, Tenun, is a graduate of the company, having joined the company after entering school. It was on a Shinkansen train ride to Tokyo 20 years ago, when the Tokyo branch was established, that I thought of making him the next president. I thought it would be great if such a serious and strong-willed man would grow up and become the next president.
Appendix 4
As a creator, I would like to give my compliments not only to Mr. Asae but also to Mr. Kai. Visual Arts is what it is today because of his achievements, and it would not be possible without him. I am sure that all employees feel the same way. In fact, Mr. Kai is a great guy.
