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Sega and Namco Merger

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Will Sega merge with Namco?

Recently Sega and Namco announced that they were considering merging together. The two gaming companies formed an alliance in September 2001, and this led to merger talks last year, but talks had stopped when Sega said no.

 

Namco again asked Sega whether they wanted to merge, and Sega has said that they are going to look at this offer very carefully, and they believe they should have made up a decision on 23rd April at their executive meeting.However, Sammy has also been in talks with Sega, and they hope to merge with Sega in October.

Namco says that it would be highly beneficial for Sega and themselves to merge, since when the Nikkei Journal wrote that Namcos stock had risen 1.3 percent and Segas stock had risen 15.72 percent.

For Sega to merge with Sammy, which had also proposed to merge with Sega earlier on, would probably be not so good of an idea because when the merger talks where first announced in February of this year, both Sega and Sammy had experienced a rapid decline in their stock value.

It is reported that Namco hopes to merge with Sega as early as the beginning of 2004.

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