Sega denies rumors that it’s looking to be acquired

Sega has denied speculations of a potential acquisition by Xbox or any other company, dismissing the rumors that emerged during the FTC vs Microsoft hearings. Recent documents related to the case revealed that Sega was among the more than 100 companies Microsoft had considered acquiring before shifting its focus to Activision Blizzard.

Following the news, Sega Sammy’s share price surged to its highest level since 2007, fueling speculation that the Sonic publisher might still be available for acquisition. However, co-chief operating officer Shuji Utsumi swiftly put an end to these rumors.

When asked about the possibility of acquisition talks, Utsumi firmly stated, “No, not now.” He did not disclose whether Microsoft had made a formal bid to purchase Sega’s games business from its parent company. A document with inadequate redaction, released earlier in the week, revealed that Sega was not on Microsoft’s short-list of potential acquisitions.

The redacted short-list included other major names, including Square Enix, IO Interactive, Devolver Digital, and CD Projekt Red. It’s unknown how far any talks went between Microsoft and the listed companies.

Although Sega currently has no plans to sell to Microsoft, Utsumi highlighted the company’s strong relationship with Xbox, which he claimed was even stronger than its relationships with Nintendo and PlayStation. He praised Microsoft’s management team, particularly Xbox’s Phil Spencer and Sarah Bond, stating that they held high regard for Sega and shared values cherished by video game fans.

Meanwhile, Microsoft is actively pursuing the acquisition of Activision Blizzard, partly to strengthen its presence in the mobile gaming market through Activision-owned King. In a similar move earlier this year, Sega acquired Angry Birds developer Rovio.

In 2021, Sega and Microsoft announced a “strategic alliance” to support Sega’s plans for its ‘super game’ strategy, indicating a close working relationship between the two companies.