Nexon puts millions into SEGA Sammy along with 4 others
Raking in the cash
South Korean company Nexon announced back in June 2020, plans to invest $1.5 billion into entertainment companies, including SEGA. One would assume to help the financial crunch caused by the Covid-19 pandemic. Hasbro, Bandai Namco, Konami and SEGA Sammy were listed by name to receive some of the cash. The companies will receive a total of $874 Million, with the exact count given to each company unknown.
Nexon went on to say that these are “long-term friendly investments”. Along with that there is “no intention of acquisition or activism.” making it abundantly clear that a buy out of these companies are not on the table. He also said the following:
“These investments reflect our respect for management teams that create and grow global properties over a period of years and decades. We believe that each has potential to capitalise on the secular shift from linear formats to interactive entertainment.”Nexon invests $874m in Bandai Namco, Konami, Sega and Hasbro | GamesIndustry.biz
Out of these businesses, Bandai Namco is in the best financial shape as the company raised it’s revenue forecast of 2021 to the tune of $6.6 Billion. Konami’s arcade business took a hit due to widespread arcade closures, but it’s overall games business peaked. From March to the end of December revenue was up by 33% to $1.3 Billion.
The company that ended the best was SEGA, which ended the same time frame up 77%. This is even after a announcement about how half of it’s current games have been delayed in 2020.