NEWS - Tuesday, May 18, 2004

Sega and Sammy Studios announce merger

The two Japanese companies to be brought together under new venture Sammy Sega Holdings
Sega and Sammy - Sega's largest shareholder following its buyout of 22.4 percent of the videogames company last year - have confirmed that the two companies are to merge, consolidating forces. Both companies have been discussing integration for some time, but initial plans were put on hold following disagreements over terms and conditions.
Now the two parties have obviously come to a mutual merger agreement. The merger will result in the forming of Sammy Sega Holdings, which will exist as of October 1 this year and will bring Sega and Sammy together under one roof.
According to reports, executives at the companies expect the merger to save both parties cash.
It's said that Sammy's current solid financial status will combine with Sega's recognised brands to provide Sammy Sega Holdings with a decent launch and build on its presence in the worldwide entertainment market.



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