|06-07-2004, 10:40 PM||#1 (permalink)|
Sega is *gasp* dying?!?!
Well...not really. I mean, well, it will LITERALLY fall to its death if they don't combine with another company who produces games, as well to become whole and powerful!
in other news, I've mentioned that Sammy (who bought us Guilty Gear series on Dreamcast and Playstation 2) wanted to buy Sega, but Sega is holding their thoughts, as they wanted to keep looking for other companies who would do well on producing games. Sega orginally wanted to join Mircosoft, but Mircosoft seems to lack interest in buying Sega so Sega was rejected lol...so Sega has its final thoughts and said that they proably would like to produce games together with Sammy and proably wouldn't be called "sega" anymore...
If they ever combine together by the end of the year, their logo will most likely be called "sega-sammy holdings" (don't ask me what it means...)
anyway, here's the full details.
$1.45 billion deal will see the Sonic publisher become a subsidiary of a new Sammy-controlled company.
TOKYO--In a joint statement today, Sega and Sammy announced they will be "merging operations" in October by becoming subsidiaries of a new holding company, Sega Sammy Holdings. Once merged, Sega and Sammy's combined annual income for the fiscal year of 2005 are expected to be at 501 billion yen ($4.4 billion), making it one of the biggest game companies in Japan.
However, according to Bloomberg News, the announcement is actually a takeover of Sega by Sammy. Under the terms of the deal, Sammy, which already owns nearly 25 percent pf Sega, will exchange about 165 billion yen ($1.45 billion) of stock in the new company for Sega's remaining shares.
Each share of Sammy will be swapped for one share of Sega Sammy Holdings, while each share of Sega will be swapped for 0.28 of a share. The deal will give current Sammy shareholders control of nearly three-quarters of the new company's voting stock.
Today's takeover recalls a similar attempt between Sega and Sammy to merge in 2003. Seven months after that deal fell through last May, Sammy bought 22.4 percent of Sega from its biggest shareholder, the CSK corporation. Since then, several high-level, old-guard Sega executives have resigned and Sammy president Hajime Satomi has become chairman of the publisher's board. Satomi will continue to hold the top position in the new company, sitting as both chairman and president of Sega Sammy Holdings.
With Sega's development skills and Sammy's finances as the largest Pachinko slot machine manufacturer in the world, the two companies hope to play a dominant role in all markets of the entertainment industry that the two companies currently have businesses in: console gaming, pachinko, "pachislot" (pachinko/slot machines), amusement, arcade games, and the content services market.
Sammy and Sega's stocks will be withdrawn from the Tokyo Stock Exchange on September 27, prior to the launch of Sega Sammy Holdings in October 1. While Sega and Sammy will continue to run as separate entities at first, plans have been announced for the two companies to merge and be reorganized into four new divisions by 2007: pachinko and pachislot, amusement and consumer games, media content and network, and miscellaneous.
Following the announcements, Sega also revealed it will be merging its divisions together. Starting July 1, Sega's seven subsidiaries--Sega Wow, Sega AM2, Hitmaker, Sonic Team, Smilebit, Amusement Vision, and Digitalrex, will begin integrating back into Sega.
By Hirohiko Niizumi, Tor Thorsen -- GameSpot