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Sammy to Buy Sega for $1.8 Billion

By

Phred Dvorak Staff Reporter of The Wall Street Journal

Updated May 19, 2004 12:01 a.m. ET

TOKYO -- Japanese slot-machine company Sammy Corp. said it will acquire struggling videogame maker Sega Corp., in a stock deal that values Sega at about $1.8 billion. The combined company will be one of Japan's largest game makers by sales.

For Sega, the takeover will provide an important financial boost after years of losses and shrinking sales. For Sammy, which makes most of its money through sales of Japanese-style pachinko pinball and slot machines, but has been trying to break into the videogame market, the deal...

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