Microsoft, EA said mulling Sega bid

Zardon · Feb 28, 2003, 10:40 PM

THE NEWS SPARKED a buying spree in Sega shares, boosting the stock price by 13.91 percent to 729 yen by 8:17 p.m. ET Thursday.
Sega said earlier this month that it would merge with pinball-style ’pachinko’ game machine maker Sammy Corp., abandoning plans to restructure on its own and turning to financially sound Sammy for help.
The paper said either U.S. company could emerge as Sega’s White Knight, pulling the company away from a merger plan that appears rife with difficulties and internal opposition.
Microsoft has asked at least one U.S. investment bank to investigate ways it could buy all or part of Sega, while EA in recent weeks has approached Japanese game makers about launching a joint bid for Sega, the paper said.
Acquiring Sega could give Microsoft a strong boost in Japan, where a dearth of Xbox games that appeal to Japanese consumers has left a vast stock of unsold consoles.
A deal could also give EA a boost in Japan and remove a competitor, the paper said.
Sega, which reduced its 2002/03 net profit forecast by 90 percent early this month, is expected to announce, as early as on Friday, a reorganization of its U.S. operations that will shed 20 percent of its work force of 450, the paper also said, quoting people familiar with the plan.
The cuts are part of a global restructuring that could lead to additional layoffs around the world, the paper said.
Sega was not immediately available for comment.
A spokesman for Microsoft’s Japanese subsidiary declined to comment on the report, but said that U.S. company chairman Bill Gates, who visited Tokyo earlier this week, had not met with Sega representatives. Reuters

amuro · Mar 2, 2003, 09:14 AM

Let me say that history has proven that EA turned their backs on SEGA with the Dreamcast.

They turned their backs on XBox too, favoring Sony.

EA wants to chop up SEGA like string cheese and this would end up with SEGA becoming part of history faded.

If however Microsoft were to buy SEGA's stock, it would totally turn the XBox as a viable console and would seriously be a threat to Sony.

Microsoft has helped SEGA many times back in the Saturn days, Dreamcast days and today with the SEGA XBox bundle pack.

It would make financial sense for the future of SEGA to be purchased by Microsoft as SEGA was known to push the Saturn and Dreamcast consoles to their technical limits as well as their arcade hardware.

We would finally start to see XBox games that would shame the most Ultimate PC setup and these games may even come to the PC as well.

My opinion is:

M-Side, M-Side, M-Side

\¯\/¯/|¯|)¯)/¯/\¯\\¯\/¯/
/_/\_\|_|)_)\_\/_//_/\_\ There is no power greater than X

Windows, Intellife, M-side, Nvidialawz, SEGA, Microsoft.

Feb 28, 2003, 10:40 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	Microsoft, EA said mulling Sega bid THE NEWS SPARKED a buying spree in Sega shares, boosting the stock price by 13.91 percent to 729 yen by 8:17 p.m. ET Thursday. Sega said earlier this month that it would merge with pinball-style ’pachinko’ game machine maker Sammy Corp., abandoning plans to restructure on its own and turning to financially sound Sammy for help. The paper said either U.S. company could emerge as Sega’s White Knight, pulling the company away from a merger plan that appears rife with difficulties and internal opposition. Microsoft has asked at least one U.S. investment bank to investigate ways it could buy all or part of Sega, while EA in recent weeks has approached Japanese game makers about launching a joint bid for Sega, the paper said. Acquiring Sega could give Microsoft a strong boost in Japan, where a dearth of Xbox games that appeal to Japanese consumers has left a vast stock of unsold consoles. A deal could also give EA a boost in Japan and remove a competitor, the paper said. Sega, which reduced its 2002/03 net profit forecast by 90 percent early this month, is expected to announce, as early as on Friday, a reorganization of its U.S. operations that will shed 20 percent of its work force of 450, the paper also said, quoting people familiar with the plan. The cuts are part of a global restructuring that could lead to additional layoffs around the world, the paper said. Sega was not immediately available for comment. A spokesman for Microsoft’s Japanese subsidiary declined to comment on the report, but said that U.S. company chairman Bill Gates, who visited Tokyo earlier this week, had not met with Sega representatives. Reuters

Mar 2, 2003, 09:14 AM	#2
amuro DriverHeaven Lover Join Date: Jan 2003 Posts: 147 Rep Power: 0	Let me say that history has proven that EA turned their backs on SEGA with the Dreamcast. They turned their backs on XBox too, favoring Sony. EA wants to chop up SEGA like string cheese and this would end up with SEGA becoming part of history faded. If however Microsoft were to buy SEGA's stock, it would totally turn the XBox as a viable console and would seriously be a threat to Sony. Microsoft has helped SEGA many times back in the Saturn days, Dreamcast days and today with the SEGA XBox bundle pack. It would make financial sense for the future of SEGA to be purchased by Microsoft as SEGA was known to push the Saturn and Dreamcast consoles to their technical limits as well as their arcade hardware. We would finally start to see XBox games that would shame the most Ultimate PC setup and these games may even come to the PC as well. My opinion is: M-Side, M-Side, M-Side \¯\/¯/\|¯\|)¯)/¯/\¯\\¯\/¯/ /_/\_\\|_\|)_)\_\/_//_/\_\ There is no power greater than X Windows, Intellife, M-side, Nvidialawz, SEGA, Microsoft.