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Sega Buyout Talks Re-emerge

by Steven Rodriguez - February 27, 2003, 10:05 pm EST
Total comments: 18 Source: Yahoo/Dow Jones

Microsoft is still in the mix, of course, but a new player has come to the rumor party this time around.

Although the company has been profiting lately, the fact is that Sega is still pretty deep in red ink. Though hints of someone scooping up Sega have been dropped ever since it pulled out of the hardware business, another article has popped up suggesting that Sega is in for a buyout soon.

Microsoft is one of the firms in the rumblings, as it has been since day one, but this report states that none other than Electronic Arts is looking to take Sega. Here's a snippet from the start of the article:

Sega Corp., grappling with a plan to merge with a pinball-machine company, now has two huge potential suitors mulling their own bids for the ailing videogame maker: Microsoft Corp. and videogame giant Electronic Arts Inc., Friday's Wall Street Journal reported.

The two U.S. companies are separately exploring the possibility of buying all or parts of Sega, according to people familiar with the situation. These people stressed that the two potential suitors have yet to hold formal talks with Sega, and no deal appears imminent.

The rest of the article explains why MS and EA could really use Sega. Check out the full story.

Talkback

Perfect CellFebruary 27, 2003

EA would buy Sega just to eliminate the competition. If Visual Concepts is out of the way, then no one could stop EA From dominating the Sports world. A monopoly of sorts. M$ is interested in everybody, amonth a go it was Vivendi, now Sega. Nintendo should step up to the plate, and make an attempt for Sega. Gamecubes do sell more than Xboxes in Japan, so Sega would make more money in the homeland. Plus i want to be able to play Sonic in a future SSBM! I also want to play Fzero. If M$ does buy Sega, they could cancel Fzero face-icon-small-sad.gif

ArtVandelayFebruary 27, 2003

Ok, if Nintendo lets SEGA get away then they are insane. If they allow Microsoft to get them, then we can kiss our beautiful blue hedgehog goodbye. And why are Microsoft and EA the top competitors. Nintendo should be fighting. Also, if EA gets em, then no more SEGA exclusives for GCN. So the way this is looking, there are either gonna be SEGA games only on Xbox, or there are gonna be SEGA games on some systems and not on others!

Perhaps I'm over reacting to this small bit of news.

But think about Rare. (which wasn't that much of a loss other than maybe Conker's Bad Fur Day2.

Marcus ArilliusFebruary 27, 2003

M$ could have control over F-Zero??? OH NO! Nintendo really, really, really needs to buy sega, or at least revoke Sega's license over F-Zero, and other Nintendo games. Is sega part of that Tri-force thing? If so, they (nintendo) need to buy them or fire them.

MajorLockeFebruary 27, 2003

Quote

Originally posted by: Marcus Arillius
M$ could have control over F-Zero??? OH NO! Nintendo really, really, really needs to buy sega, or at least revoke Sega's license over F-Zero, and other Nintendo games. Is sega part of that Tri-force thing? If so, they (nintendo) need to buy them or fire them.


Um, Nintendo owns the rights to F-Zero, not Sega.

oohhboyHong Hang Ho, Staff AlumnusFebruary 28, 2003

Second, Sega will have to finish off any contracts still outstanding before the takeover if it does happen. If F-Zero is in contrat, it will be finished regardless of what the buyer tells them otherwise unless they are willing to go through any penilties stipulated under the contract. Sega is not in a prime condition to be brought out as they have a positive cash flow and climbing out of the red.

mouse_clickerFebruary 28, 2003

Yeah, that whole merger with Sammy kind of makes this rumor just sound like wrong. Besides, EA HATES Sega- they Speak out about Sega whenever possible. I thought the original Sega-being-bought-out rumor was just a warped version of what really happened- Sega merging with a company we've all never heard of. face-icon-small-smile.gif

joshnickersonFebruary 28, 2003

Considering the rivalry between EA and Sega, and the fact that Sega games sell horribly on Xbox, I'd say this rumor is false.
If anything, Nintendo should be looking to sign them up as an exclusive second party.

ThePermFebruary 28, 2003

ok Nintendo needs to buy Sonic team and Amusement vision, Ea nees to buy Am2, Microsoft needs to buy hitmaker, there was a reason why Sega was split int osub companies...if they ever had to be bought out they could divide the rights. The last thing sega shoudl do is let itslef be vought buy oen company, that would totally ruin them in most peopels eyes. Sega has pride im sure, they dont want to be one companies bitch.

Perfect CellFebruary 28, 2003

Well, i look at it this way, Nintendo could do worse than spend money to get Sega a 2nd party. That is if these rumors are true... Sega has a ton of franchises that do sell, VF, Panzeer Dragoon, Sonic, Nights,Shinobi. Those alone would push consoles, Plus they got the Trigun game i sooo want to play face-icon-small-smile.gif

ThePermFebruary 28, 2003

dependign on who buys the companiy or companies certain directors producers may not stick around.

manunited4eva22March 01, 2003

Somehow someone who doesn't know the name of Nintendo's console doesn't strike me as someone with knowledge about the video game industry.

BlkPaladinMarch 01, 2003

Accually if they do sell in the worst case senario all projects for other companys will be scraped, or taken over by the consoles's makers (ie F-Zero.) Personally I seriously doubt that Sega will sell out. But if they do it would be great if Nintendo tried to get Sonic Team. But then again if someone else does get they may be able to get Yu Yuzaka (I think that's his name.)

Marcus ArilliusMarch 03, 2003

Quote

Originally posted by: MajorLocke
Quote

Originally posted by: Marcus Arillius
M$ could have control over F-Zero??? OH NO! Nintendo really, really, really needs to buy sega, or at least revoke Sega's license over F-Zero, and other Nintendo games. Is sega part of that Tri-force thing? If so, they (nintendo) need to buy them or fire them.


Um, Nintendo owns the rights to F-Zero, not Sega.


Well then, ask Perfect Cell about that. However, I think if Nintendo licensed Sega to make the next F-Zero game, they have the rights to that game. Thats sort of what happened when Nintendo let rare go. Rare owns some of the Donkey Kong characters although Nintendo owned the games. I'm not sure which characters it was but we won't see them on Nintendo anymore. Once again, I'm not sure about this. In my original post I was just responding to Perfect cells statement, "If M$ does buy Sega, they could cancel Fzero."

BlkPaladinMarch 03, 2003

But they won't have any control over the game if they get sold to Microsoft or any one else. The contract will more than likely have to be re-evaluated or rewritten, canceled if they are sold to one of Nintendo's rivals.

And I would like to add on to my last post because I was having troubles with my comp when I made it. It would be cheeper for Nintendo to go for the talent, if Sega breaks itself up and sells pieces, because the only franchise I see will be any benefit to Nintendo is Sonic. But if they go after the talent its easy to make some of the games under different names. Monolith did that with Xenosaga, they make certin care to make no reference to Xenogears. Even the mechs are not called gears but AGWS. And Square can't stop Namco from making anything with Xeno in its name since Xeno in itself just mean alian.

BlkPaladinMarch 03, 2003

...... Sorry about this but this secition of the board doesn't allow me to edit the posts, so here the edit.

In short Square may own every right to Xenogears. But all the intellectual rights to any pre or post stories belong to the creator. The only thing is they can't make direct refence to any copyrighted material. So Xenosega's subquent stories are the right of Monolith currently.

mouse_clickerMarch 04, 2003

Marcus: Nintendo didn't GIVE the F-Zero license to Sega to work on, they LOANED it, just like they did with Donkey Kong and Rare or Zelda and Capcom. Nintendo still owns every inch of all three of those franchises- they just allowed someone else to make the actual game for them.

ThePermMarch 04, 2003

What would really work otu nicely for everyone is if nintendo not only sold off its intelectual properties and teams but what if it gave each company a chance to buy 14 percent of the company. Imagine if sony, nintnedo, microsoft, ea, activision, etc all owned a piece.

Perfect CellMarch 05, 2003

Again, i never said Fzero would be made for the Xbox if the sale happens (Sega has denied it i think) i just said they might cancel it if it hasnt been finished. Rare never finished games like DK Racing and Perfect Dark Zero for the GCN. I might be wrong though..

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