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Sega, Bandai call off merger

Published on .

TOKYO -- Both Sega Enterprises and Bandai announced that their planned merger has been canceled due to internal reasons at Bandai. A major reason for the cancellation was widespread anti-merger sentiment by employees of Bandai.

After the proposed merger was first announced in January, there were many rumors that Bandai's employees were not happy with the merger plan. The two company corporate structures and management styles differ. Bandai is run like a family business, while Sega has a very modern management style based on the American model.

Copyright May 1997, Crain Communications Inc.

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