Sammy Aquires Sega

[Lightning Flik 0]

CORRECTED - CORRECTED-UPDATE 2-Japan's Sammy to acquire Sega in $1.4 billion deal

Reuters, 05.18.04, 6:01 AM ET

 

In TOKYO story headlined "UPDATE 2-Japan's Sammy to acquire Sega in $1.4 billion deal" please read in last paragraph ....Sammy earlier on Tuesday.... instead of ....Sammy earlier this month (correcting time frame).

 

A corrected story follows.

 

By Yukari Iwatani Kane

 

TOKYO, May 18 (Reuters) - Japan's biggest maker of slot machines, Sammy Corp <6426.T>, will acquire video game developer Sega Corp <7964.T> in a stock deal worth $1.4 billion, the two companies said on Tuesday.

 

The acquisition, which values Sega at a 21 percent premium based on Reuters calculations, will allow Sammy to use Sega's strong brand and library of hit games, such as the popular Sonic series, to boost its presence in the arcade game market.

 

Sammy had already once failed to take over Sega last year.

 

The combined companies' annual sales will exceed 440 billion yen ($3.84 billion), overtaking rival Konami Corp <9766.T>.

 

The two companies said they would create a new holding company, Sega Sammy Holdings Inc, of which Sammy will hold a 95.3 percent stake.

 

Each share of Sammy will be swapped for one share of Sega Sammy, while each share of Sega will be swapped for 0.28 share.

 

The two companies aim to close the deal on October 1 with Sammy Chief Executive Hajime Satomi heading the new company. The two firms' respective stocks will be withdrawn from the Tokyo Stock Exchange on September 27.

 

Shares of Sega closed up 1.01 percent at 1,000 yen and Sammy ended up 4.84 percent at 4,330 yen ahead of the announcement. The Nikkei stock average <.N225> rose 1.96 percent.

 

The news follows Satomi's appointment as Sega chairman in February. Sammy acquired 22.4 percent of Sega last December in a move that was seen as the first step in taking a controlling stake.

 

Merger talks between the two companies broke down once last year due to disagreements over management style and other terms of the integration.

 

Satomi told Reuters in March that he was targeting a profit of $1 billion between Sammy and Sega in the 2005/06 business year.

 

Sega on Tuesday afternoon reported an annual net profit that nearly tripled on the back of strong performances by its arcade business but forecast lower earnings this year.

 

Sammy earlier on Tuesday reported a 40 percent increase in annual net profit on a 52 percent rise in sales. It forecast a higher net profit for the current business year. ($1=114.45 yen)

 

Copyright 2004, Reuters News Service

 

...all I can say is FUCK~! Sega Sammy? Ugh... I can't believe Sammy actually bought them out.

 

So what do you guys think? Good news or bad in the world of gaming?

Edited May 18, 2004 by Lightning Flik

[Golgo 13 0]

Aww. Not that I'm terribly disappointed or anything, since I like Sammy and think the new combined company will be able to churn out awesome stuff. It's just kind of sad to see how much Sega has dropped off.

[razazteca 0]

Guilty Gear vs Virtual Fighter?

[EricMM 0]

How is this getting me Guilty Gear 3?

 

And if it's NOT getting me GG3... WHY ISN'T IT GETTING ME GG3!?

[Exslade ZX 0]

Wow...didn't Sega JUST go through this huge deal to get rights to The Matrix Online...

[DerangedHermit 0]

Hasn't this been rumored for at least a few months?

[Lightning Flik 0]

Wow...didn't Sega JUST go through this huge deal to get rights to The Matrix Online...

Yes. Not only that, but they also posted (as per the article provided) tripled their estimated profit to date. So that makes it even weirder.

 

Hasn't this been rumored for at least a few months?

Sammy tried purchasing Sega last year and failed miserably. They then decided to try a merger not that long ago and that fell through because of who would end up where from Sega in the new hiarchy of Sega Sammy.

 

What has been speculated for the last months was that Sega and Sammy were getting the talks of merging back in gear again. Besides, this ain't no rumor any more. This is the real deal.

 

What baffles my mind, is what the hell happens to all the Sega projects at E3? Still on schedule? Will we see them as Sega Sammy? Or what's up now?

 

And I'm terribly sadden that Sega went from #2 contender of the gaming industry to being a very solid gaming company to being bought out by another company.

 

What makes me worry most about this, is what the fuck happens to all my Shining games I was promised. They better deliver or I get Choko to sic them all with her Hammy of Powwy.

[Karnage 0]

I thought Sega just recently was starting to make profits again.

[Lightning Flik 0]

I thought Sega just recently was starting to make profits again.

I'm harping now, but as mentioned in the article, three times what was expected of the profits for right now. That's surely not why they got bought up then.

 

This whole thing doesn't make sense. Sega was on the rebound and had a lot going right for it, so why cave in to Sammy?

[Anya 0]

Neither good news or bad. Just whatever. Sega has been irrelevant for a while now.

[AndrewTS 0]

Meh. Since it was rumored forever, by the time it actually happened, who cares?

 

Actually, back when it was going to happen, who cared?

 

The ironic thing is that Sammy is getting into the game industry in similar ways to Nintendo and Se(rvice)ga(mes). In 10 years will we be playing on a Sammy home console?

 

Sega--you've just been bought by a f***ing pachinko company. However, you have little to blame but yourselves.