Merger Namco and SEGA Confirm Merger Talks, Proposal 'Being Examined Carefully'

[Dreadknux]

Namco and SEGA have made public statements confirming news that broke the other day that the two companies are in high-level negotiations to merge. SEGA stated that it had received Namco's proposal and will "begin examining the offer carefully".

According to Namco's own statement on the matter, talks of a merger had apparently started last year, following a collaboration between the two companies in the arcade space (which likely included the 'Triforce' arcade board that has been co-developed with Nintendo). But SEGA "halted the talks", and recently Namco "requested a reopening" of those merger talks.

SEGA said it would aim to come to a preliminary decision over Namco's proposal by April 23, noting that the company is already in late-stage talks with pachinko maker Sammy over a merger. For what it's worth, Sammy said that it was not aware of talks between Namco and SEGA, and hopes to close its deal in May so that the merge can happen in October.

Gamespot reports that there is apparently more appetite for Namco to be SEGA's merging partner over Sammy. Since the news of talks broke, Namco's share price has reportedly risen 1.3 per cent while SEGA's has risen 15.72 per cent. In contrast, market reaction to SEGA and Sammy's merger in February actually resulted in a "rapid decline in stock value".

We'll have to see what SEGA's decision is at the end of the month.

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