Sega Not Interested in Acquisition Talks with Microsoft, Shares Soar
Sega Not Interested in Acquisition Talks with Microsoft
Sega has stated that it is not interested in acquisition talks with Microsoft, despite recent news suggesting otherwise. Documents released during Microsoft’s legal battle with the US Federal Trade Commission revealed that Xbox boss Phil Spencer sought approval from Microsoft’s CEO to approach Sega Sammy about acquiring its gaming studios in November 2020.
Xbox Sees Sega as an Attractive Acquisition Target
According to Spencer, Sega is the “most attractive next acquisition target” for Xbox due to its global PC catalog, mobile presence in Asia, and strong brand recognition on consoles through its classic IP, such as Sonic.
Sega’s Shares Rise Following Acquisition News
Following the news of the potential acquisition, Sega Sammy’s shares reached their highest point since 2007.
Sega Co-Chief Operating Officer Responds to Acquisition Talks
When asked about the possibility of acquisition talks, Sega co-chief operating officer Shuji Utsumi told Bloomberg, “No, not now.” However, he did not reveal whether Microsoft had made a formal approach.
Closer Relationship with Microsoft
Sega has a close relationship with Microsoft, with its Creative Assembly studio working on Xbox titles such as Halo Wars 2 and Age of Empires 4. In 2021, Sega announced a strategic alliance with Microsoft, which involves developing games using Microsoft’s Azure cloud platform.
High Regard from Microsoft
Utsumi stated, “We are very close with Microsoft and have a great relationship with its management team. Xbox’s Phil Spencer and Sarah Bond truly value the principles that video game fans hold dear.”
Microsoft’s Desire for Asian Game Developer Acquisition
Microsoft gaming boss Phil Spencer has expressed his desire to acquire an Asian game developer, particularly a Japanese studio, on multiple occasions. Legal filings also revealed that Square Enix, publisher of Final Fantasy, has been considered as an acquisition target.
