Square Enix makes $200M Tecmo bid

Final Fantasy XIII publisher makes "friendly" 22.3 billion-yen offer for troubled Ninja Gaiden-maker; deadline Sept. 4.


Less than 24 hours after it made headlines for selling over 1 million copies of Ninja Gaiden II, Tecmo is making news again. This morning, role-playing game giant Square Enix (Final Fantasy XIII) announced it was making an unsolicited but nonhostile bid for the Dead or Alive 4 publisher.

In a statement, Square Enix president Yoichi Wada presented the offer as an attempt to rescue Tecmo. In the span of two months, the publisher has been rocked by a declining stock price, class-action lawsuits, and the departure of and legal action by star designer Tomonobu Itagaki. Just last week, Tecmo president Yoshimi Yasuda abruptly stepped down, citing personal reasons.

"Tecmo is a group of excellent creators with a proven track record in the global market, which is a precious human resource of Japan," explained Wada. "We, however, cannot be optimistic about the future of this significant resource, given the current circumstances surrounding Tecmo. We believe that Tecmo will be able to make a great leap forward by joining Square Enix Group, which will provide the group with further growth opportunities as well."

Though Tecmo has not yet publicly commented on Square Enix's offer, it is likely tempting to many shareholders. The ¥920 ($8.46) per share offer is a 30 percent premium on Tecmo's ¥706 ($6.49) closing price on Thursday. The Bloomberg news service values the entire bid at 22.3 billion yen ($205 million). As a result of the offer, Tecmo stock shot up 14 percent to close ¥806 ($7.41) per share today, with Square Enix's stock rising 2.6 percent to ¥3,610 ($33.20).

While generous, Square-Enix's self-described "friendly takeover bid" (TOB) is very time-sensitive, expiring on September 4--next Thursday. Wada's statement ended with "If [Square Enix] should, by the deadline, receive no response from Tecmo, or fail to obtain consent by the board of directors of Tecmo to the TOB, the company will withdraw the proposal, and will NOT acquire the Tecmo shares through the TOB as planned in the proposal." (Emphasis in the original.)

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Avatar image for Rinoa_Bunansa

I am a die hard Square-Soft fan. And ever since Enix merged with Square-Soft, I've lost interest in what they have to do with Final Fantasy anymore. They've completely ruined the Final Fantasy Vll series that Square-Soft made. I heard that Enix recently bought EIDOS. All I thought was- there goes Tomb Raider and Soul Reaver! Before you know it, Enix will try to touch up on past events that are completely irrelevant to the actual story in Tomb Raider and Soul Reaver, and all of the other EIDOS' games. Before you know it, Enix will try to buy CAPCOM and run their games into the ground too. Watch, ENIX will try to touch up on Monster Rancher's past characters lives that are completely irrelevant to the actual story.

Avatar image for NicaSon

Square Enix has simply lost touch with their fanbase. I understand that investors make the business world go round, but who buys the games? GAMERS. And what happens when a company makes a bad game? Surprise! Gamers won't buy them. And as everyone and their grandmother has mentioned, its a harsh economic climate right now, and gamers aren't as stupid as we once were throwing our money away at anything that had Sony, Capcom, SquareSoft, Konami or EA on the box. Its not Microsoft's fault and its not Sony's fault. SE has no one to blame for their idiocy but themselves. And no, FFXIII is not the answer to their financial issues. All FFXIII is going to be is another version of FF whatever number, only with prettier graphics. SE is stuck in the past while western developers (and some eastern) have evolved in the video game business. Running to Microsoft's system doesn't make you hip and cool with the western audience because western gamers want Fallout 3 and Mass Effect and Bioshock. End rant.

Avatar image for Ton77

im mad at you SE you rushed Infinite Undiscovery. Oh well The Last Remnant and Star Ocean are on its way :)

Avatar image for staley6565

If they just made DOA5, but actually revamped the game for the first time since 2000, I'd be happy. Give the game a story that would make each character worth beating it with and I think it'd be a definite buy.

Avatar image for MetalGuyver

Come on Tecmo, Work with Square and make those awesome Monster Rancher and Deception Games again!

Avatar image for Elann2008

Tecmo is trash. I wouldnt bid on it. Keep your 200 mil and walk. Ninja Gaiden has never been the same since the NES days, and only the true old-school gamers can attest to that. Ninja Gaiden Sigma and NG2 are junk. I only reason why I would agree to this bid would be to grab their employees and have them work on Square projects and wash out the name Tecmo, altogether. Good riddens.

Avatar image for halosniper52

Take it.

Avatar image for Timstuff

"residentzombie2 Posted Sep 2, 2008 2:22 pm PT Plus a Final Fantasy vs DOA fighting game would be awesome" Oh my goodness I never even considered that. With Star Wars characters in Soul Calibur 4, Mortal Kombat vs. DC Universe, and of course the warm fuzzy feelings we all have about Marvel vs. Capcom. I'm sure that if Square buys Tecmo, we'll at least see Tifa in DOA5 as a guest character.

Avatar image for 1uP_OnYou

Well I hope Tecmo excepts the offer that Square-Enix has laid out for them. I feel like Im dreaming I never expect something like this to possibly happen.

Avatar image for jeremiah06

@thepyrethatburn: Your wrong, Sony bailed Square out then and FFX was a Square soft product the first final fantasy with square-enix was FFX-2 and that merger was 40-60 with square getting the 40 but in exchange getting to keep all their bigwigs in charge after the merger.

Avatar image for Thanatos2

Well, hopefully, Square can bring in their legendary need to release polished games. as good as NG 2 was, the camera was awful and the graphics were a little dated, something Square would force Team Ninja to fix if they wanted to release something in conjunction with the Square Eneix brand name

Avatar image for residentzombie2

Plus a Final Fantasy vs DOA fighting game would be awesome

Avatar image for residentzombie2

If SE can get Tecmo, we may see Tomonobu Itagaki work as a SE game designer and get back to making HIS Ninja Gaiden and DOA games again. We can only hope.

Avatar image for hannify

o0 didnt expect that

Avatar image for Dixteel

I think the intention might be very obvious--- Remake of FF7: Ninja Gaiden Action + Cloud and his gigantic sword + FF7 RPG and Drama ==> Final Fantasy 7 Gaiden...on Wii!?!

Avatar image for mrkame16

Imagine....Ninja Gaiden RPG? or a fighting game like DOA staring Final fantasy Characters.

Avatar image for Hvac0120

I think the reason for this merger is to expand the SquareEnix library of games past the RPG genre. Tecmo has not really done all that great over the past few years, but still has some good IP's to work with. This is one merger that I support in hopes the SE will ultimately make all the Tecmo games 100% better.

Avatar image for vss3rd

lets try to think of it THIS way..just imagine.. ninja gaiden with all its button mashing comborific high action..plus--real--character developement.the best of both worlds: --mindnumbing action for the twitch --gainful character building for those with slower hands

Avatar image for dre2k14

id be so f uckin pissed if they made ninja gaiden and doa a rpg and thats all se is all about .....sure final fantasy is cool to people that like rpg`s but ive been playin ninja gaiden for years and if they change it to a rpg there gonna lose alot of loyal fans to the series

Avatar image for siLVURcross

Whatever SE plans to do, it better not be another FF7 spin off, I'm so sick of em'

Avatar image for Phya52

If there were a Ninja Gaiden or DOA rpg, Tomonobu Itagaki would laugh his butt off at the stupidity. I wonder if any of those series would do well without him, by the way.

Avatar image for djezhel619

A Ninja Gaiden RPG but with real time fighting... count me in ;) Ryu Hayabusa vs. Sephiroth

Avatar image for RPG_Fan_I_Am

yes the Spirits with in was an epic fail, square still made money off it, and they used the technology to make final fantasy X, which in the long run made a higher profit then it would have if the movie was never made. square merged after the release of X so it still had solid ground. but seriously, lets get to the point, time to buy some shares.

Avatar image for SporkFireXPS

thepyrethatburn said: "Y'know, the funny thing about these comments is that it was actually Enix that bailed Square out with their merger (Some might remember that Spirits Within didn't quite pan out as was hoped.) but now people seem to think it was the other way around. Occasionally, it does seem that Enix is playing second fiddle to Square now." I believe that was Sony, not Enix.

Avatar image for hellpolice

Two great companies on a possible merging...this'll open the door for many crossover possibilities muuhahahaha. A DOA rpg

Avatar image for hunter8man

Oh please, oh please, oh please happen! Dream come true.

Avatar image for yodadudehmm

... =D Must... buy.... shares :P

Avatar image for esmarsu

While Ninja Gaiden stays alive, I don´t care who the owner is! But Square Enix could be something good for Tecmo. We´ll see what happen.

Avatar image for Sato2099

There is only one way to save TECMO. Ninja Gaiden and DOA goes multiplatform to PS3.

Avatar image for applesause24

I believe this would be a great opportunity for Tecmo so long as Square keeps the creativity and image alive.

Avatar image for CureForLiving

Seems Square is trying to break into the more action-oriented gaming genre.

Avatar image for Scianix-Black


Avatar image for PandaBear86

Cloud, Sephiroth and Tifa in DOA5? Sign me up! :)

Avatar image for NeoNavarro

Don't do it Tecmo! Hang in there things are bound to turn around!

Avatar image for bcviper

good. god knows ninja gaiden needs a story.

Avatar image for Erebus

A slime appears. Ryu attacks... Ryu mortally wounds slime for 4 damage! You receive 3 XP You receive 4 GP You receive item: Dragon Sword

Avatar image for Barnardsmark

lets face it, if square enix doesn't do this, ninja gaiden 3 isn't happening. i'm kind of excited that square enix might be picking up some really good designers.

Avatar image for xdeiri

Sqare enix girls will get bigger boobs now

Avatar image for kemar7856

all tecmo has is ninja gaiden and doa but whats gonna happen to doa5 now.......i hope they dont turn ninja gaiden into a rpg

Avatar image for Thing2

I don't want Tecmo to go under either, I've been playing their games my whole life. Besides, after Itagaki & Kojima team up (i'm calling it) they're gonna need a powerhouse like Square/Enix/Tecmo for healthy competition =)

Avatar image for Ardain

Sweet! This is gonna to be tight if Tecmo & Square-Enix are going to be together. Hey maybe that one dude will come back. You all know the one who created DOA and Team Ninja. I just can't remember his name?

Avatar image for Pixy64

no i don't agree DOA's character are more cute & famous than Final Fantasy's characters

Avatar image for Hachibei

I agree with x-2tha-z. Although seeing some Final Fantasy girls in DOA(X) would be pretty hilarious.

Avatar image for grimskunkMGS4

sanim02 you say DOA is MS exclusive but damn if you knew your games you would know it was on PS2 also

Avatar image for VenomRitual

see EA, this is the kind of bid you should have made to Take-Two

Avatar image for thepyrethatburn

Y'know, the funny thing about these comments is that it was actually Enix that bailed Square out with their merger (Some might remember that Spirits Within didn't quite pan out as was hoped.) but now people seem to think it was the other way around. Occasionally, it does seem that Enix is playing second fiddle to Square now. Something for Tecmo to think about before accepting this offer.

Avatar image for Nexeus

I agreen with laventine. Square-enix makes amazing games all around as does tecmo. But together the possibilities could be awesome in scope. Imagine RPG fighers and actin games the likes of wich the world has never seen. I hope it goes over smooth. Plus I dont want to see tecmo go under :( PS>>> while in some crossovers would be cool, seeyng ryu in FF14 or cloud in DoA5 would be kinda lame.

Avatar image for 666_Laventine

This can be very good if ya ask me and bad at the sametime. I say good cuz Square bought Tri-Ace or Enix whichever they go by and that didn't turn out bad at all. I think this is something that should definetly be highly considered. On one side you have a company that can dominate the RPG realm. They made their own fighters and action games that aren't too well pending which one of course. Then we got Tecmo that makes awesome fighters and action titles. If the two were to merge into "SquareEnixTec" they could be a very well rounded competitor in the gaming business. Since they're all about remaking stuff they could go back on Dirge of Cerberus and make it 10 times more awesome than it is. As for games like DOA I say exclusive games need to stop being exclusive. For crying out loud systems are $300 plus now! I say the sytems just need to clump together and just be one! So what if it pisses off a couple of fan boys? Fan boys are still gonna buy the product thus their ranting is basically as good as null. If this happens I can already imagine some very cool games that the two could do. Final Fantasy action games could now be as fun to play like ninja gaiden, I mean could you just imagine playing a game of the sorts like ninja gaiden, but like controlling Sephiroth, Cloud, Squall, Auron or whoever and look as awesome as if you were playing Advent Children (come on I know you just wetted your pants). When it comes down to it when stuff is like XBox exclusive eventually it goes to another system anyways. Bioshock was exclusive to 360, but where is it going to now? PS3 suckas so don't whine about stuff like that. Oh yeah and the thing bout the Final Fantasy Characters being brought into something like Ninja Gaiden or DOA, are you kidding me? Thats not gonna happen! And even if so, so what? Soul Caliber broght Star Wars characters which by the way was pointless and stupid. Either way I bet even if they did you would just become a sell out anyways and still get the game to play it just to trade it back in to gamestop for $5.

Avatar image for x-2tha-z

I think the TOB is a good idea but only if they leave their key franchises as they are. There's no need for crossover games. I don't want to see Final Fantasy characters in the next Ninja Gaiden or Ryu Hayabusa in the next Final Fantasy. Square Enix, if you buy Tecmo, please leave Team Ninja as they are. Just give them more money to make great games.

Avatar image for 205212669269561485377169522720

whoa whoa whoaaa hold up.. doa is a xbox exclusive.. if FF characters end up in a MS exclusive game, then people will get pisseedddd.. same if the game becomes multi-plat. SE and TECMO shud NOT merge. Im happy to see doa on a 360 and some FF exclusives on ps3. I dont wanna see cloud, sephiroth or tifa on a xbox game. SE will get whooped by fanboys and i admit i do not like this.