Japanese company Sega Sammy Holdings Inc, also known as the Sega Sammy Group, has announced the sale of Sega Entertainment Co, which is the part of business responsible for the iconic Sega arcade and video games,. The deal was finalised and announced on 4 November.
Sega Entertainment has been bought by Genda Inc., which will now own approximately 85.1% of the shares in Sega Entertainment. The remaining 14.9% still belong to Sega Group Corporation (SHQ), although it is stated that Sega Entertainment is due to be excluded from the consolidation.
In its press release, the company cited as reasons for the sale the fact that amusement centre operations have been strongly affected by COVID-19; the use of facilities has declined remarkably; a significant loss was recorded at 1Q of the fiscal year ending March 2021 and that despite the recent recovery trend, the situation remains uncertain.
The group announced the establishment of a Structural Reform Committee to reform its organization structure to adapt to the external environment.
The company stated in the release: “We have been considering various options in order to adapt to these changes in business aiming for improvement of the profitability and early recovery of sales of Amusement Center Operations area. In this process, we have been discussing the transfer of SE shares to GENDA, a company that has a strong desire to expand Amusement Center Operations business and has decided to conclude the share transfer agreement at Board of Directors meeting.”