Namco to merge with Bandai

GCN News | One of the largest video game companies to merge with Japan's largest toy company.

Bandai, creator of the ‘Power Rangers’, and Japan’s largest toy company, has announced a buy-out of Namco, makers of Pac-Man and Ridge Racer.

Bandai purchased 6.3 percent of Namco for 10.5 billion yen in cash, according to a joint statement released today.

In September they will swap stock options, bringing the total value of the deal to 170.8 billion yen (US$1.63 billion).

This makes Bandai the largest shareholder, and now has controlling interest in the company.

The Tokyo-based companies will combine September 29th under the name Namco Bandai Holdings Inc., in which Bandai would hold a 57 percent stake and Namco the remaining 43 percent. The new company will be led by Bandai President Takeo Takasu and Namco Vice Chairman Kyushiro Takagi.

This makes them the third largest toy and video game company, behind Nintendo Co Ltd at number 1 and the also recently merged “Sega Sammy Holdings”. Namco/Bandai now moves Konami to 4th place.

Another note of interest is that Nintendo last year bought a large chunk of Bandai stock, giving them a controlling interest in that company.

The new joint company will give a press conference this afternoon, 4pm Tokyo time.

More information as it comes.

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8 Comments

Qbert

7 years ago

So does this mean more Namco games on Nintendo systems since Nintendo has shares in Bandai. Wait but SC3 was just announced as a PS2 exclusive...I'm confused.

Matt

7 years ago

Nintendo does not have a controlling share in Bandai, so it can't throw its weight around with regards to exclusives and so on. Once the merger happens (assuming it does), shares in the new company will be issued on a ratio basis, so Nintendo will have a smaller share in the merged company than they currently have in Bandai (which is about 6%, I believe).

ObsoletE

7 years ago

just means that for every PS2 games sold (as in SC3), nintendo are making money...

a bit like EA, Renderware and GTA:SA a few months back...

EDIT: fixed a mistake between mixed up corporations...

Gtpod

7 years ago

Hey, if we're lucky, we might get a Power Rangers game for the Cube!!

David

7 years ago

GTPod wrote

Hey, if we're lucky, we might get a Power Rangers game for the Cube!!

LOL!

Oh, and Nintendo was the third biggest stockholder in bandai, so they obviously would have a say in what the company does.

EDIT: actually they were the ninth biggest stockholder, although No1 owned less then double Nintendo, so it's a close top ten.

Maybe they should increase their share after this merge?

Oh, and isn't it EA who bought critereon (and therefore renderware)?

GroovySamurai

7 years ago

Time Crisis released by Bandai, thats going to feel odd. I think its a good move though on both sides.

Actually you raise a good point Qbert. Could see some new titles for the Revolution.

David

7 years ago

I've looked up info on Nintendo's interest in Bandai, and it seems Nintedno was working with another company to have a controlling interest in Bandai. they are currently the ninth largest shareholder, but combined with another company who was interested in a deal, UFJ Tust Bank, they actually would have the largest share.

At the time (last october) it pissed off Sony, since Bandai makes PS games. But it seemd a fairly friendly transaction, where Nintendo was trying to build a closer relationship with the makers of Digimon, Tamagotchi and Power rangers.

Although Nintendo said it was just a good buy to make money.

I'm not sure what stake the largest Namco shareholder has, but unless it's in the realm of 10% (which is rare), then Nintendo are still a major shareholder, and possibly could use their share in conjunction with UFJ Tust Bank to get their opinions heard by the board!

Hyperworm

7 years ago

Well, this is interesting news.

Though typically I think of games with Namco branding to be quite good, and I haven't had quite the same experience with Bandai...

...so it feels quite strange to see a merge between the two

Well, anyway, presumably Nintendo now have a bigger share in Namco/Bandai than they had in Namco before thanks to their Bandai shares; I hope they do grab up more, it'd be nice for Nintendo to have some influence over them.

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