Sega Enterprises Ltd is spinning off an internet services business based around its Dreamcast console to affiliate, International Investment, with an eye to going public later on. The unit will concentrate on e-commerce and online gaming and information services. International Investment, is 70% owned by Sega’s largest shareholder CSK and 30% by Sega.
Nick Gibson, an analyst at Durlacher Research, described the spin-off as opportunistic move as internet businesses are currently being traded at a considerable premium over traditional businesses. A float would help to ease some Sega’s considerable debt problems, he said. Sega has already teamed up with AT&T WorldNet and launched a Dreamcast.net service to bolster the console’s online presence.
