SAMMY BUYS 22.4 PERCENT OF SEGA
TOKYO -- Sammy Corp. will buy 22.4 percent of Sega Corp. from former majority shareholder, CSK Corp., at a purchase price of $419 million, it was announced on Monday. The purchase divests CSK of any involvement in Sega while making Sammy the largest shareholder. Sammy already owned less than 1 percent of Sega stock and it may buy more Sega stock in the future, said Sammy president Hajime Satomi. That outlook is consistent with Satomi's statements made in midyear that he still intends to take over Sega, despite collapsed merger talks between the two firms last May. "Sammy is a strong company financially and is looking to pursue strategic investment opportunities," said John Rowe, president and COO of Sammy Holding Co. Inc. in Carlsbad, CA. "Now that we have taken yet another step toward becoming a global force in entertainment, we look forward to finding mutually beneficial ways to work with Sega." Only 33 percent plurality ownership is needed to give Sammy effective control of Sega under Japanese law, the Associated Press reported. Forbes said Sega stock rose 9.76 percent on the news. Sammy's stock rose 3.6 percent and CSK stock rose 2.11 percent.
UWINK WILL GO PUBLIC; INVESTORS PONY UP $3 MILLION
LOS ANGELES - After more than a year of virtual silence, Nolan Bushnell's online touchscreen video game company uWink Inc. announced Dec. 5 that it will become a publicly traded company through a complex financial maneuver known as a reverse merger and stock swap. A Utah-based "shell" company called Prologue, whose stocks are traded Over The Counter, is the vehicle for this transaction. On paper Prologue will acquire uWink's outstanding shares. In practical terms, uWink has received $3 million in capital through a private equity private placement. Investors were rounded up by Falcon Capital of Amsterdam, Netherlands. Officials said uWink will use the $3 million to build units of its "SNAP!" countertop game to fulfill back-ordered sales, and to develop new products. From Jan. 1 to Dec. 4 of this year, uWink lost $1.1 million and generated revenues of $268,632. Assets as of Dec. 4 were valued (un-audited) at $1.9 million with working capital of $891,792 and total stockholders' equity of $934,596.
DAVE & BUSTER'S THIRD QUARTER: MORE FOOD, LESS FUN
DALLAS -- Dave & Buster's on Dec. 8 announced results for the third quarter and 39 weeks ended Nov. 2, 2003. Total revenue for the quarter decreased 2 percent to $82.9 million compared with Q3 2002. "Softness in amusement revenue" was blamed for the slide; customer spending on fun at D&B's dropped over 5 percent during Q3. But food and drink spending rose just over 1 percent. Revenue from comparable stores decreased 3 percent over last year's third quarter. For the 39 weeks ended November 2, 2003, total revenue was $262.8 million compared with $273.9 million last year, a 4.1 percent decline. Amusement revenue was down 7.4 percent for the 39-week period; food and beverage earnings also declined, but less sharply. Revenue from comparable stores decreased 5.7 percent over last year. Total debt at the end of Q3 was $65.0 million compared with $84.4 million at the end of the same period last fiscal year. Officials said D&B's is "gradually narrowing the down revenue trends while dramatically increasing our productivity."
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