Last Updated on 06/10/2021 by GS Staff
Nintendo and Sega are two iconic video game companies based in Japan. If you grew up in the 1980s or 1990s you likely logged countless hours playing on one or both of the classic consoles. A lot has changed since those golden years of gaming. However, this article will specifically get you up-to-date on if Nintendo owns Sega. Here is what you need to know about the topic.
Does Nintendo Own Sega?
Nintendo does not own Sega. Nintendo is a publicly traded company that trades on the Toyko Stock Exchange and in the United States under the symbol NTDOY. Sega is a separate company that is owned by Sega Sammy Holdings.
Sega Sammy Holdings was established in 2004 when Sega and Sammy Corporation merged. Sega is a video game developer and publisher. Sammy is known for making pachislot and pachinko machines for recreation and gambling. The 2005 Sega Sammy annual report outlines the reasons why the companies merged. The report states that Sega and Sammy were struggling in areas such as developing a clear strategy for Sega and business development in new markets for Sammy. The company believed that a merger would resolve the existing issues that each company was having and put Sega Sammy on a path to become “the world’s number one comprehensive entertainment company”.
Nintendo Almost Bought Sega?
A New York Times article indicates that Nintendo once attempted to make a deal to buy Sega in 2000. Executives were reportedly in negotiations where Nintendo would purchase Sega for $2 billion. Spokespersons for each company denied a deal was potentially in the works and called it merely a rumor. Keep in mind that Sega was in a very difficult situation at the time with its Dreamcast not living up to sales expectations. The company was also going on its fourth year of annual losses. In other words, a sale to Nintendo potential could have been a way for Sega to reinvigorate itself with two powerhouses in gaming under one roof. Of course, it never happened but speculation has remained that Nintendo will one day acquire Sega.
Microsoft to Buy Sega?
The current rumor is that Microsoft may acquire Sega. In reality, this rumor isn’t something new. However, it may be potentially closer to the truth with Microsoft’s 2020 acquisition of ZeniMax Media Inc., the owner of Bethesda. The purchase was for $7.5 billion. For those unfamiliar with ZeniMax, they are the parent company behind classic video games such as The Elder Scrolls, Doom, and Fallout. Microsoft has shown that it is willing to spend to increase its library of content. The ZeniMax Media deal may be a sign that Microsoft will continue to acquire gaming content, particularly to increase the attractiveness of its services like Game Pass – the subscription service that allows users to play a catalog of games. Sega would certainly provide much-needed exposure to the Japanese market that Microsoft likely would benefit from going forward. Of course, there is no indication that Microsoft has any desire to purchase Sega at the time of this article.
Can You Buy Sega Stock in the U.S.?
An investment in Sega Sammy stock could potentially provide a nice return for investors if the company was acquired. Investors in the U.S. can purchase the ADR using its stock symbol SGAMY. If you happen to have access to the Tokyo market in the U.S., you can buy the Tokyo listing instead of the U.S. ADR through your broker.
Final Thoughts
Some people believe that the company’s recent restructuring efforts are a sign that it is getting ready to be acquired. In January 2021, Sega Sammy announced that it would separate its video game and amusement divisions within the company. The company stated that the purpose of this move was to “adapt to the external environment” and to build a more “efficient structure”. Truly, this is likely all it is. However, the speculation is that a more defined gaming business within the company will better prepare it for a potential acquisition. We shall see.
Of course, do your own research before investing. Do not take any of the above as investment advice or as an endorsement to purchase any stock mentioned above. Invest at your own risk. We own no stocks of the companies above. We will disclose any future positions in this article immediately before a stock purchase.
