This photo shows Phoenix Seagaia Resort in Miyazaki, southern Japan, in January 2023. Sega Sammy is selling its resort complex Seagaia to Fortress Investment Group of the U.S., the Japanese entertainment company said Friday, May 10, 2024.
Sega Sammy, the Japanese entertainment giant famous for "Sonic the Hedgehog," is selling its resort, Seagaia, to Fortress Investment Group from the US.
The deal, undisclosed in financial terms, marks a strategic move to refocus on its core gaming business. The sale, expected to yield an extraordinary income of approximately 8.5 billion yen ($55 million) for Sega Sammy, was approved by its board of directors.
New York-based Fortress was selected due to its extensive experience in hotel acquisitions, having purchased 176 hotels since 2011. Sega Sammy will retain ties with Phoenix Resort Co., the operator of Seagaia, by acquiring 20% of voting rights through newly issued shares.
Alongside this announcement, Sega Sammy reported a decline in profits for the fiscal year ending March, attributed partly to the pandemic's impact on its resort operations. Despite challenges, the company's gaming division continues to thrive, with hits like "Persona 3 Reload" and the enduring popularity of titles such as "Angry Birds" and "Like a Dragon."
With the resort deal, Sega Sammy aims to streamline its focus on gaming, leveraging its lucrative Sonic licensing revenue. Fortress, majority-owned by SoftBank Group Corp., will assume management of Seagaia, enabling Sega Sammy to concentrate on its gaming strengths amidst evolving market dynamics.
