Sega and Sammy merge together
Sega Corp. has announced that it is planning to merge with publisher/pachinko
developer Sammy Corp. Over the past months, rumors have been surfacing regarding
the possibility of a merger, but it is somewhat of a surprise to find out that
the lesser-known Sammy Corp. would merge with Sega. Sammy president Hajime
Satomi will lead the new company, which will be valued at approximately $3.1
billion. Apparently, Sammy's sales have tripled over the last three years, while
Sega recently announced cutting its profit forecast for 2002-2003 by 90
"By combining Sammy's high growth power in pachinko game systems and Sega's strength in software development and in the arcade business, we can create a globally known, comprehensive entertainment firm," Sammy President Hajime Satomi, who will lead the new entity, told a news conference.
"Sega announced that it has entered into a memorandum of understanding to combine its business with SAMMY Corporation effective October 31, 2003. According to the agreement, the companies will combine in order to maximize corporate value by combining both companies' management resources and by maximizing business synergies with the goal of firmly establishing their position as a global and comprehensive entertainment company. Additional information has not yet been announced."