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Report: Tecmo Plans Koei Merger, Rejects Square Enix
by David Jenkins
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September 4, 2008
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Tecmo has rejected Square Enix’s offer of a friendly takeover, opting to plan a merger with rival Koei instead.
The troubled Japanese publisher and developer claims that a merger with Dynasty Warriors publisher Koei stands a better chance of "boosting corporate value," according to a Reuters report.
The two companies intend to come up with a detailed merger plan within the next two months or so. Dead or Alive and Ninja Gaiden creator Tecmo has struggled ever since high-profile producer Tomonobu Itagaki and others left the company and filed a lawsuit for unpaid overtime. Shortly thereafter, president Yoshimi Yasuda exited Tecmo.
The offer from Square Enix has been valued at the equivalent of up to $206 million, with a deadline set for today. Square Enix has said it will examine the Tecmo and Koei merger plan in order to understand why Tecmo picked Koei over its own offer, possibly a hint that Square Enix will make a second bid.
However, Tecmo president Yasuharu Kakihara says the company will not consider any new offer by Square Enix – despite many analysts favoring the Square Enix deal. A merger between Tecmo and Koei would create a company only a third the size of Square Enix.
As a result of the news, Tecmo’s share value jumped by 7.5 percent and Koei’s by 0.3 percent on the Tokyo Stock Exchange, while Square Enix’s price fell by 1.9 percent.
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I love the Dynasty Warriors franchise, and I love Ninja Gaiden, so it's great for me. Hopefully this means we'll be getting more Ninja Gaiden love for the Playstation.
Ninja Gaiden on the playstation will be kool, it prove to a wider crowd the Ryu will kill, slay, hunt and murder Shinobi easy, smooth, clean, quick.
SquareEnix is starting to show love for the 360, but thats because they learned the heard way bout dealing with sony(like MS is any better) when the PS2 slim could not support the HDD that came with Final Fantasy Onilne.
In the End Koei is the better choice let just hope they play good together, and share, share.