Chapter 111: SEGA gets acquired
"This is an outrage! SEGA forms one of the cornerstones of Japan’s entertainment industry! How can you even think of selling it off to some American?" shouted Kenji Mitsuharu, as he stood in the boardroom of SEGA’s headquarters in Tokyo.
"Sirius Software has made a very generous offer, Mr. Mitsuharu. And let’s be honest, SEGA has been struggling lately," said Kazuya calmly.
"If only I could fire you on the spot Kazuya! This was your idea wasn’t it? To sell off SEGA to that American bastard Zakhrov?" shouted Kenji.
"He practically owns us anyway, Kenji. Its Sirius Software’s games that are bringing us the most revenue, not to mention that we’ve been using their servers and cloud infrastructure for two years now," said Kazuya.
Kenji grit his teeth.
"Not happening Kazuya. The board refuses to even consider this," he said.
"Sirius Software has already announced their bid for SEGA’s stock. You know what that means," said Kazuya.
"Let them try! SEGA isn’t for sale to some maniac who just armed Libya!" shouted Kenji.
Kazuya sighed wearily.
"Kenji, our stock price is in the crapper. You can’t even poison-pill it," he tried to explain.
"Kazuya Honda. I want your resignation. All in favor of Kazuya’s immediate termination?" asked Kenji.
A few board members nodded.
"All opposed?" asked Kenji.
Several of the major shareholders raised their hands.
"This man just propositioned that we sell of SEGA to some American!" screamed Kenji.
"Mr. Mitsuharu, please calm down. Regardless of Mr. Honda’s... associations, he has been a steady and successful CEO and steward of SEGA. We will not be terminating him," said one of the shareholders, but glaring at Kazuya to communicate that he was on thin ice.
"Very well. But I still move that we do everything within our power to prevent Sirius Software from acquiring SEGA," said Kenji.
"Seconded," said another shareholder.
"All in favor?" asked Kenji.
"Yay," chorused the majority of the board members.
Kazuya stood up.
"Very well, I shall continue to serve as CEO of SEGA and not discuss this matter further," he said, and started to walk out of the boardroom.
The door to the boardroom burst open before he could reach it, and a panicked executive rushed in.
"Mr. Mitsuharu! Sirius Software has just bought all of SEGA’s stock on the open market!" he announced breathlessly.
Kenji’s face turned white.
"Impossible! They can’t do that!" he shouted.
The executive took a deep breath.
"They paid cash, and now own 47.9% of SEGA’s stock. That makes them the largest single shareholder," he said.
Kenji sank into his chair, defeated.
"Well, I guess we have no choice but to accept their bid then," he said bitterly.
"How much are they paying per share?" asked Kazuya.
"6400 yen per share. Over 100% premium over the current market price," replied the executive.
"Well, at least we’ll be getting well paid," muttered a board member.
"Yes, but at what cost?" lamented Kenji.
Tomoe nervously entered the boardroom, holding a folder in her petite hands.
"U-um, Honda-sensei, this just arrived from Sirius Software’s legal team," she said, handing the folder to Kazuya.
Kazuya opened the folder and scanned the contents.
"Gentlemen, these are Sirius Software’s terms for SEGA’s direction going forward," he said.
The board members leaned in to see what the terms were.
"First, Kazuya Honda will remain as CEO of SEGA, and will have full autonomy over SEGA’s operations. Kazuya Honda, or whoever he names as his successor, will report directly and only, to Sirius Software. Third, SEGA will not, and will never be merged with any of Sirius Software’s other ventures or subsidiaries. Fourth, SEGA will be liquidated as a Japanese public company in the event of Sirius Software failing or ceasing to exist," read Kazuya.
The board members stood in stunned silence.
"This is almost too good to be true," muttered one of the members.
"It’s a trap! There’s got to be a catch!" shouted Kenji.
"All in favor of accepting Sirius Software’s terms?" asked Kazuya.
"Yay," chorused the board members, except for Kenji who sat in stunned silence.
"Then it’s settled. SEGA is now a subsidiary of Sirius Software," said Kazuya.
He looked at Kenji.
"I suggest you take the buyout offer Kenji. It’s the best you’ll get," he said.
Kenji leaped to his feet.
"I will get a counter-bid! Even if I have to get the Japanese government to block this sale!" he shouted, and stormed out of the boardroom.
Kazuya sighed.
"Tomoe, please inform Sirius Software that we accept their terms," he said.
"Y-yes, Honda-sensei," replied Tomoe, and hurried out of the boardroom.
Oda Tanaka, one of the other board members, turned to Kazuya.
"Why is Zakhrov dictating these kinds of terms? I’m happy he is, but it still seems odd," he asked.
Kazuya smiled wryly.
"Oda-san, are you a member of the Star-Crossed Maid Cafe?" he asked.
Oda’s eyes widened.
"Y-yes," he said cautiously.
"Then you know why. Aaron Zakhrov is the one who built that, and helped the lovely Ms. Tachibana get it off the ground," replied Kazuya.
Oda nodded slowly. Realization dawning on him.
"So, he’s an otaku and chunnibyou as well," he chuckled.
"I would say he’s a more of a real-life Edge Lord, compared to those who just pretend to be one online," said Kazuya.
"Damn! That’s why everybody hates him," muttered Oda.
"Indeed, so let’s try not to piss him off," said Kazuya with a wry smile.
----
"To a bright future for SEGA!" toasted Kazuya, as he clinked glasses with Aaron in Star-Crossed Maid Cafe.
"To SEGA!" replied Aaron, and took a sip of his drink.
"I must warn you though, that Kenji Mitsuharu is going to try and block this acquisition," said Kazuya.
"I’m banking on the terms I set down, and the offer I’ve made being too good for the ministry of culture to block it," replied Aaron.
"Well, he can try a counter-offer through his friends at BlackRock, but I don’t know if they have the stomach for a bidding war," said Kazuya.
"Well, for now, we’ve got control of SEGA, so let’s enjoy the moment," said Aaron.
"Agreed," replied Kazuya, and took another sip of his drink.
Tomoe approached their table, dressed in her Star-Crossed Maid Cafe uniform.
"Would you like anything else, Masters?" she asked politely.
"Yes, a status report of the café," replied Aaron.
Tomoe blushed slightly.
"Y-yes, Master Zakhrov. The café has been doing well. We’ve had a steady membership revenue from our patrons, and the profits from the café itself hav been steady," she said.
"Excellent, and have you been ignoring the negative reviews like I instructed?" asked Aaron.
"Y-yes, Master Zakhrov. They were all trying to bait us into changing the business model and theme of the café," she replied.
"Indeed. This cafe’s aesthetic is not up for debate," said Aaron firmly.
"Y-yes, Master Zakhrov," replied Tomoe.
"Good girl, now I would like a slice of chocolate cake," said Aaron.
Tomoe smiled, and went to fetch the cake.
"You know, this acquisition thing was her idea. I hadn’t even considered it thanks to my own damn stubborn pride," said Kazuya.
"Don’t be too hard on yourself. A good leader knows when to listen to advice," replied Aaron.
"Yeah, well, I just hope I can live up to your expectations," said Kazuya.
"Don’t worry about that. Just keep SEGA independent, and keep making great games," replied Aaron.
"That’s the plan," said Kazuya with a smile.