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 badman11226

That sweet, tecmo and square. Ninja gaiden 3 is going to be crazy if this 2 merge. Just do it before EA joins in

Avatar image for Great_Ragnarok

NOOOOOOOOOOO don't do it! we don't want a feminized Ryu Hayabusa! Tecmo is good by themselves!

Avatar image for Gameslayer_JDR

i really hope that Tecmo accepts the deal. For those who havent seen Dead Fantasy, youtube it or look for it on game trailers. Its one of the best fighting animations 2 date. SquareEnix/Tecmo has the potential 2 become of the top companies with SE's creativeness, stories, etc. and Tecmo's characters and sex sells attitude.

Avatar image for CrazedColombian

Squall and Cloud would be sweet to have in a fighting game but be cooler to have in Soul Calibur where they can use their swords..... Tifa and Riku on the other hand would fit right into DOA

Avatar image for VolcanicDemon

It will now be Square Tecmonix. It would be great to play as Sephiroth, Cloud and other FF characters in Dead or Alive. Imagine a triple threat between Cloud, Tidus and Vaan.

Avatar image for *Lightchaos-206931739271909150

Sounds like a good deal, lets hope both Square Enix and Tecmo make great games. Especially a new DOA rpg or a new Final Fantasy/Ninja Gaiden game would be great.

Avatar image for matrixman2k

I just hope they (Tecmo) accept the offer considering all the trouble they are in or going through. Who knows this might become something memorable and worth while. Never were a big fan of Tecmo titles, thought they were in the middle of no where with their games - a cross between hentai pc games and a bad fighting game and did neither well. I'm into the soulcalibur and tekken for combat and those nice hentai pc games a perfect combination. Come on i've seen people using those beach volleyball patch/cheat to get the girls naked. Perhaps if SquareEnix were to wave their magic wand into the mix they might do some real magic something similar to kingdom hearts series (weren't sure at first then turns out to be brilliant). Tecmo also lost their most horniest creator Tomonobu Itagak, this guy even tried it on his secretary. Maybe he got a little too creative. Still, this guy is on something else... anyway. Jon

Avatar image for Quinzark

I actually didn't see this coming. However if it saves a company (what's left of it) then I'm all for it. Star Ocean & Dragon Quest survived with Enix's merger with Square Co. The Latter being one of my favorite game series. So I have high hopes for this if it goes ahead.

Avatar image for JamesSoprano

I hope Tecmo Declines .... cause if i heard right from another website .. Tecmo likes PS3 .. or was it Namco ....gah can't remember .. but if it it tecmo .. then thell just take their games and make things multi platform .. and cause of the whole E3 FFXIII news i will not buy another Square Suck game again

Avatar image for MiB_GEO

[This message was deleted at the request of the original poster]

Avatar image for mangepenge

[This message was deleted at the request of the original poster]

Avatar image for Tekknight

I agree with othe users that it seems that if Tecmo doesn't accept the deal, a hostile takeover is sure to follow. Oh and if you want to see a Square vs Tecmo fight... Look up Monty Oum's Dead Fantasy 1 & 2 on Youtube/Gametrailers!

Avatar image for YEPEE00

Square-tecnix hehehe

Avatar image for FalsePlacebo

Yet another buyout/merger story? I really believe when its all said and done this will be the legacy of this con sole generation. That being said this one actually makes sense. Square Enix gets to bring another development house in and might actually make good games that aren't called Final Fantasy and Tecmo gets there rears out of the proverbial fire (at least a lil bit). Plus we as gamers might actually get a new IP or two out of the deal so thats 3 wins.

Avatar image for SuperIntendent

SquareTec Enix? SquareMo Enix? Square EnixMo? Square TecNix?

Avatar image for cfamgcn

Tecmo needs this... but I agree, Ninja Gaiden made by Square-Enix would be weird ~ de arimashou :P

Avatar image for PumpkinBoogie

See Tecmo? This is what happens when you screw the people over that help you create your games--i.e. Itagaki and others on Team Ninja--it's called 'karma'....well, Tecmo it might be something to go w/ since, y'know, your company has already been going in a downward spiral. Can you really afford not to?

Avatar image for LastPRmarine

People remember most of the members of Team Ninja QUIT So there ain't much left of NG and DOA But I got see how this would work NG XIII DOA IV hahaha there's no way those titles will come out

Avatar image for Ultima-Chocochu

I like Tecmo, and love SquareEnix but I think the merger might be semi-strange. Only when it goes NINJA GAIDEN, then says SquareEnix, it's funny to picture XD

Avatar image for NightRain

PLEASE, tell me this will NOT happen... I am still, yes still to this day, disappointed that the great ENIX is now with Square soft... and now maybe Tecmo? I'll be PISSED as hell if it happens. Do not let another mistake happen again.

Avatar image for vietboi89

i dont care if SE is in this for only profit but hell Tecmo needs this bad with SE creativity and Tecmo's DOA sex sells the two would be a great combo and lets not forget NG and Fatal Frame

Avatar image for EPaul

This is probably tecmo's only chance of surviving. They should do it right now!

Avatar image for Lexxzilla

As the old Nike slogan used to say, `Just Do it'

Avatar image for Mystearical

@TheArcade I DID NOT say I was... but as a ONE console owner (which happens to be the PS3) it does worry me as it should anyone who does own ONE console. I'm not anti-360 or the Wii for that fact and I'm not a fan-"gurl" either. But until I get a hold of the 360 then yeah it's natural to want good games on the console you own! It didn't bother me when FFXIII went multi - I think let us all enjoy the goodies (unfortunately that's not how the industry works)

Avatar image for Raven1504

multi console ninja gaiden games !!!! would rock maybe with a little help froms square .N G can have a better story telling and maybe ebetter action games from square

Avatar image for kratos_karmakar

For God sake TECMO do it. take the offer. save this company . TECMO should live on. make more games.

Avatar image for jhuuueee

Square Enix just want more profit.

Avatar image for majere613

It's worth mentioning that if Square took over Tecmo and shook things up a bit, the way _might_ be clear for an olive branch to Itagaki. And as others have said, I'd much rather Square than EA or some other bunch of shovelware-pushing clowns.

Avatar image for rome_tx

Dead Fantasy might be a reality if this happens. lol

Avatar image for Glade_Gnarr

Tecmo should go for it, SE it's not EA so they shouldn´t worry about their franchises being in the wrong hands.

Avatar image for omnifas

Ryu Hayabusa died with Tomonobu Itagaki, Ninja Gaiden will be a completely different franchise without him, for better or for worse. This buyout needs to happen, its only good for both companies.

Avatar image for nmanma

they shouldnt accept it, whats going to happen to my icon ryu hayabusas gaiden. This is terrible yet enticing news

Avatar image for TheArcade

@YunalescaFFX Are you anti-X360? Because if so then it's truly ashame. Why can't people just like the games they play no matter the system???

Avatar image for chzchzchzwiz

I think this could be good and bad. It just makes me hope that this will not lead to Square Enix diverting too many resources to tecmo. I've never owned a single tecmo game myself but they do have some that interest me. I think it would be good if they took it over because then they would prolly be able to make better games for tecmo and hopefully bring some exclusives towards PS3 since SE in the PAST favored playstation products.. but this generation , microsoft buys off peoples exclusives so we will see.

Avatar image for theevilvillain

Accecpt he must,wise he shall be.

Avatar image for spike6958

Here's looking forward for Tifa Vs Yuffie in next DoA, Take the offer Tecmo.

Avatar image for Gribb85

Tecmo needs to accept this bid.

Avatar image for Mystearical

LOL Dead Fantasy (yes check it out on youtube)... talk about coincidence My issue is Tecmo = 360 and S-E = leaning towards the 360......... SO who will their games work out when it comes to next gen consoles?

Avatar image for shadowkiller11

i agree with xkojimax.

Avatar image for pgeurs

Tecmo would still be the publisher I think if this goes through.. As far as the FFXIII style characters in DoA, remember that square would just be the publisher on these.. Even if square didnt take over tecmo, without the designer, creator (itagaki and team ninja) making the game, DoA and NG will never be the same unless they work out some deal to get those guys back.

Avatar image for Lord__Darkstorn

Maybe they'd start making Ninja Gaiden games for the PS3 again.

Avatar image for NeverMore0

Squeenmo FTW?

Avatar image for meharu

It is a great offer from Square-Enix, Tecmo must think about it seriously and accept it, it wouldn't be a smart move if they don't, i love both Square-Enix and Tecmo games and it would be great if they join together.

Avatar image for Fill07

they said it was a friendly bid, which means the company names would stay the same i believe, Square-Enix-Tecmo. that does not sound right at all. and tecmos stupid if they dont take this.

Avatar image for dth_dlr

this deal could save Tecmo, i think they should accept the bid, it seem a fair takeover bid

Avatar image for Kenji_Masamune

no, I'm sure that the deadline is so sort because they have already decided before they made this announcement. They were talking about this for the past few months.

Avatar image for NDegree

One thing is clear that there won't be any exclusive titles in future if ''Tecmo'' accept this.

Avatar image for Pfilosophy

I'm crossing my fingers for a Deception 5 even though I know the odds.

Avatar image for NWA_31

"Tifa en Dead or Alive...anyone? =D " With bigger boobs than ever ! :o

Avatar image for rockutd

So is Tecmo gonna be Dead or Alive?