GENDA Acquires Sega Entertainment's Arcade Business as Its Subsidiary
posted on by Alex Mateo
Global Entertainment Network for Dreams and Aspirations (GENDA) announced on Wednesday that it has acquired 85.1% of shares of arcade and amusement center company Sega Entertainment. The shares will transfer on December 30.
Through a collaboration with Sega Entertainment, GENDA plans to revitalize the amusement industry and involve manufacturers, operators, and users in the industry. GENDA is aiming to develop an amusement machine rental business.
Sega Sammy Holdings Inc., the parent company of the game makers Sega and Sammy, revealed that Sega Entertainment's percentage of voting rights will become 14.9% following the share transfer. In addition, Sega Entertainment will be excluded from the company's consolidated subsidiaries.
Jiji Press reported on Wednesday that Sega Sammy will withdraw from the domestic arcade management business by the end of the year as a result of GENDA's acquisition. However, Sega Games Holdings told Famitsu that the existing Sega arcades will still retain the Sega name. The arcades' occupancy rate had been declining due to closures from the effect of the new coronavirus disease (COVID-19). The Sega Akihabara Building 2 arcade in Tokyo closed on August 30.
Sega Sammy Holdings Inc. merged its Sega Games Co., Ltd. and Sega Interactive Co, Ltd. companies in April. Sega Games Co., Ltd is the surviving company, but it is under the new name Sega Corporation. Sega Sammy Holdings Inc. did not issue new shares for the merger as the merger is an absorption merger between two wholly owned subsidiaries of Sega Sammy Holdings Inc. Sega Holdings Co., Ltd. also changed its name to Sega Group Corporation. Sega Sammy Holdings Inc. stated that it is reorganizing the company "with the aim of expanding corporate value over the medium to long term."
Sega Games Co., Ltd. was established in June 1960, and Sega Interactive Co., Ltd. was established in April 2015. Sega Games Co., Ltd. handles planning, development, and sales of games for consoles, PCs, and smartphone devices. Sega Interactive Co., Ltd handles development and sales of amusement machines.
Haruki Satomi is serving as President and CEO of Sega Group Corporation, as well as Chairman and CEO of Sega Corporation.