Cominus Posted May 23, 2004 Share Posted May 23, 2004 This probably old but I just found out today. Sega and Sammy to Merge Two companies combine to make industry giant. May 21, 2004 - Sega and Sammy announced today plans to at long last merge operations. The two companies expect to complete a full merger on the October 1, 2004, and will, together, combine for 440,000,000,000 yen (3.84 billion dollars) in yearly sales. This figure will put the merged entity above Konami as Japan's number one third party game publisher. Specifics of the deal (stuff you probably don't need to care about) call for the two companies to form a new holding company called Sega Sammy Holdings Inc, under which they will operate as a single entity. Sammy will own a 95.3% stake in the new company. As part of the deal, one share of Sammy stock will be swapped for one share of Sega Sammy stock while one share of Sega stock will be swapped for 0.28 shares. The Sega swap value represents a 21% premium over the market value.Sammy Chief Executive Hajime Satomi will head up the new firm, something that's not a big surprise seeing as how following Sammy's December purchase of 22.4% stake in Sega from former majority share-holder CSK, Satomi was appointed as Sega chairman. A full acqusition was expected following the December deal, but final confirmation did not come until today as Sega and Sammy both released their year 2003 financial statements. Both companies scored huge profits over last year, with Sammy up by 40% and Sega profit up almost 300%. See the rest of today's headlines for further details on the financial performance of both companies. Satomi has already gone on record with his expectation that Sega and Sammy, once combined, would be able to reach a billion dollars in profit for the 2005 to 2006 business year ~IGN.com Link to comment Share on other sites More sharing options...
Diso Posted May 23, 2004 Share Posted May 23, 2004 THats Interesting. Sega has good ideas and stuff but it never had much support Oh well, Wonder if Capcom and SNK would merge Link to comment Share on other sites More sharing options...
Skythe Posted May 23, 2004 Share Posted May 23, 2004 Boo to IGN. I hate that site. Link to comment Share on other sites More sharing options...
Agozer Posted May 23, 2004 Share Posted May 23, 2004 Old train. Everybody get off. Link to comment Share on other sites More sharing options...
Permethium Posted May 23, 2004 Share Posted May 23, 2004 Sammy merging with Sega$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. Sega's current president, Hisao Oguchi, will become vice president of the company. 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 president Hajime Satomi commented to reporters during press breifings that "Sammy's profits will be larger during [the first] two or three years [after the merger]. But thinking into the future, Pachinko and Pachislot has its limits since it's domestic [business]. Sega will turn out to be greatly more profitable [in the future]" Satomi also commented that Sega and Sammy's brand names will still continue to be used after the future reorganization of the two companies. Businesses related to the arcade and consumer gaming sector will continue to run under Sega's name, while the Pachinko and Pachislot related businesses will run under Sammy's. 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 -- GameSpotPOSTED: 05/18/04 09:52AM PSTMore of a Take-over than a merge Damn..... Link to comment Share on other sites More sharing options...
Gryph Posted May 23, 2004 Share Posted May 23, 2004 Boo to IGN. I hate that site.Yes, since IGN was the key factor in their merger (take over) and the only site that reported it. But in the end, will this really affect us? It's not like Sammy is going to shut down any Sega projects. Link to comment Share on other sites More sharing options...
Agozer Posted May 23, 2004 Share Posted May 23, 2004 Oh noes!111 Sammy will turn every arcade into a Pachinko machine parlor and rule the world. Woe is us! Bah. Link to comment Share on other sites More sharing options...
Cominus Posted May 23, 2004 Author Share Posted May 23, 2004 I thought it would be good new but who knows, what other games does sammy make? Link to comment Share on other sites More sharing options...
Ash_crimson Posted May 23, 2004 Share Posted May 23, 2004 Boo to IGN. I hate that site.Yes, since IGN was the key factor in their merger (take over) and the only site that reported it. But in the end, will this really affect us? It's not like Sammy is going to shut down any Sega projects. they may not shut down any current sega products but in the long term how will sammy use characters like sonic. in my opinion sonic is probably the biggest best known character in the gaming industry... i just hope sammy dont holding back with the usage of sonic... or maybe even milk it too much... (i hope im making sense...) currently sammy have no real headlining character to promote with Link to comment Share on other sites More sharing options...
Wizard Posted May 23, 2004 Share Posted May 23, 2004 SO they finally did it, offically. I wonder if it's just business (like S-E). Link to comment Share on other sites More sharing options...
Cominus Posted May 23, 2004 Author Share Posted May 23, 2004 SO they finally did it, offically. I wonder if it's just business (like S-E).NOT YET! October 1 will be the full merge. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now