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Konami Bails on Takara
by Darren Pierce : Radar, Radar! : 04.24.05 8:04pm EST
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Video game giant Konami has killed its joint business venture with Takara, and is expected to dump its 22% ownership of the toy maker, citing Takara's slumping sales as hurting its bottom line.
The cooperative venture seemed to consist mostly of Konami pouring capital into Takara, which has never quite recovered from its 2000 dip. While Takara was working to be back on track by the end of 2005 with sweeping management changes and restructuring, the Konami pull out might well prove to be a disaster for Takara's plans. Konami's vote of no confidence in Takara's management seems to align with fellow Takara investor Murakami's view, although Murakami has been steadily buying up increasing bits of Takara over the last several months.
The cooperative venture seemed to consist mostly of Konami pouring capital into Takara, which has never quite recovered from its 2000 dip. While Takara was working to be back on track by the end of 2005 with sweeping management changes and restructuring, the Konami pull out might well prove to be a disaster for Takara's plans. Konami's vote of no confidence in Takara's management seems to align with fellow Takara investor Murakami's view, although Murakami has been steadily buying up increasing bits of Takara over the last several months.