Sammy Speaks
What buying Sega means.
(stolen from IGN)
December 08, 2003 - Earlier today, Sammy Studios announced that they will buy 22.4% of Sega's stock for $419 million to become the largest shareholder in the company. We got a chance to talk to John Rowe, President and Chief Operating Officer of Sammy Studios, for a few minutes to find out why.
What is the big reason for becoming a majority shareholder in Sega for Sammy Studios?
From a valuation standpoint, we think it's a very attractive investment. After 2001, Sega has done a very good job of reorganizing its business and is profitable. With stock in Sega, Sammy Studios will be highly profitable and generate a lot of cash flow. Keep in mind that this is more of an investment than a merger. We also like Sega because it's one of the most recognizable names in the world. Coupled with great franchises and IPs, they will emerge as one of the great companies in this industry once again.
Do you have plans for a bigger stake in Sega?
Looking at all the options we wouldn't rule it out. We don't have any specific plans today, but it's one of the things that would be possible in the future.
Are there any plans to bring characters from different companies together?
How Sega and Sammy might leverage this investment to work together in various ways will be discussed over the next 60-90 days in both the higher and lower levels. We want to combine the strengths of both companies. We don't know what those are today and we can't define it. Until this day we haven't had an opportunity to sit down, get under the surface, and see how the companies may best integrate their strengths. I am looking forward to working synergistically so that we can be positioned well to leverage our creative expertise. I like that word, "synergistically."
Synergistically? It's fun to say.
It is fun to say and even though it's cliché and used to death it's still a good word. Like "juggernaut." Is there a way to work the word "juggernaut" into this interview?
I'll see what I can do. Is there anything else you'd like to say about your current plans?
My message is clear: stay focused on what we've been doing two years ago. We're just focused on trying to make good product and everything else will come from that. If we fail to make good games then we can have the best brand and the best marketing and the best advertising, but we will not succeed. Right now, there is no master plan, it's going to evolve.
