Nintendo should expand its reach beyond games and become a broader entertainment company. That's the thinking of the investment firm ValueAct Capital Partners, which recently acquired 2.6 million additional shares in the company to own a 2 percent stake in the gaming giant.

ValueAct is known as an "activist investor," which means the firm is picking up a huge number of shares in Nintendo in an attempt to influence its future direction. However, unlike other activist investors, ValueAct is not attempting to get a seat at Nintendo's board of directors, according to a report from Reuters. Instead, the company is looking to work "behind the scenes" with Nintendo.

ValueAct began investing in Nintendo back in April 2019, and it currently has a stake of $1.1 billion in Nintendo. ValueAct said in a note, which was seen by Reuters, that it sees room for growth in Nintendo's business in the areas of new games, as well as a transformation to become a "broader entertainment company."