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 DoomZaW

In terms of buisness and survival, i'd say that tecmo should accept the offer, considering that their big game developer, the boss and alot of other headstaff has left the company. But as a gamer i would say it would be sad to see the NG/DOA characters in FFX style... imagine Ryu Hayabusa as a whiny teenager running around in some rather femine clothes and calling him/herself a man :(

Avatar image for xkojimax

square enix is playing smart. they know tecmo got hit hard with all the people quitting and at the same time they know they can take advantage of that and build upon their losses. looking foward to seeing what happens...

Avatar image for Doolum

kinda like take it or leave it.with the track record of a giant like Square Enix,i wonder what Tecmo has to think about...

Avatar image for glitchgeeman

I don't see what the problem is. This isn't EA we're talking about. Square consistently gives us high quality games with crazy production values and (alebit not as often as I'd like) a good number of unique games. I'm confident that if Tecmo was in Square's hands, they'd use the dev to its maximum potential.

Avatar image for extrasafeivy

A few complaints about the "EA effect" at Square Enix. If SE were going down that route FFXIII would already be here and FFXIV will be out next year and so on. I dont think the quality will drop as they care for well made games. As it states above, they are trying to save a company from the pan so be thankful that DoA and NG can still be in Tecmo's hands. We'll see by Thursday though......

Avatar image for Wolfather

I hope they do it, Tecmo's in danger.

Avatar image for blizzvalve

Wow. If this goees through, is it now going to be called Square-Enix-Tecmo?

Avatar image for thepyrethatburn

I greatly appreciate Square for it's practices, especially since they wanted to emphasize that their offer is unsolicited but still friendly (even though the deadline is kinda short... any suggestions why?). The deadline is short in order to pressure Tecmo to rush a decision.

Avatar image for GeneralArrow

SE is in a pretty good position right now. Love both makers games and I don't think it will hurt. As for EA I don't think SE could care right now, there potential is more than EA would probably be willing to spend. In all honesty EA isn't that bad of a market if your a foreign game maker.

Avatar image for Chico_Azteca

Tifa en Dead or Alive...anyone? =D

Avatar image for Flame_Blade88

Ehhh ok, I can't really find anything bad about this really. I'm not happy nor angry about this, pretty neutral about the idea.

Avatar image for nVidiaGaMer

Will there still be the Deception and Trapt games?

Avatar image for KOSMOSEngineer

"Dead Fantasy, anyone ? I never thought that video could become reality... " Ha! That's right! Maybe that's why they're doing it, lol.

Avatar image for barJerubsheol

At least they're not competitors, really on any level. That is a comforting thought.

Avatar image for kkkkknaruto

as long as its not EA lol

Avatar image for NWA_31

Dead Fantasy, anyone ? :o I never thought that video could become reality...

Avatar image for blackace

Well Temco only has 2 big franchise in DoA and NG. Not sure what SquareEnix would be able to do with those. A NG RPG could be done right. Temco really needs to make some new IP's. Tecmo may take this offer if no other company wants to buy them out. Microsoft should buy EA, basically because EA makes a lot of different games in different genre. Having EA Sports lineup completely exclusive to 360 would be incredible. That would be a serious dagger to Sony. No Madden on the Playstation? What would sports gamers do? lol!!

Avatar image for daftpunk_mk5

You know what would be awesome? If the developers of the two companies worked together on a game. Maybe an RPG with some radical new fighting system.

Avatar image for Evanrocknuma

This is the best news I have heard in a long time. After all the crap Tecmo has been doing wrong for example being complete... well you know whats to Tomonobu Itagaki maybe Square can bring the man back and even if they can't they'll be bound to make amazing (not over explicity hopefully) future DOA title under the name. Now if only they could buy out EA and end all their Hostile takeovers... sigh*

Avatar image for zacattack214

I don't really like Square Enix, becuase I don't like roleplaying games, so if Tecmo does join them, I hope this won't mean that everything that we see from them from here on out will be roleplaying games.

Avatar image for Rhen_Var

Damn, Square Enix has been making a bunch of bold moves lately. If they start making deals with EA, the world might just not end.

Avatar image for makemeweak

Pouncing on the wounded. That's business...

Avatar image for Dogswithguns

Whatever. I never liked NG anyway. this wont make me like it at all.

Avatar image for V-Nine

...only looking foward to this if Tecmo can still be autonomous...

Avatar image for xMDTxgorrion

NG and DOA the reason why i buyd a xbox and now...

Avatar image for Mystoksor

I guess this would mean Microsoft having the next ninja gaiden games. But at the same time, this would make square a serious force in the industry, and the Xbox(s) should be getting all of the FF's from there on out

Avatar image for Um_Wut

as long as they dont make NG an RPG, i'll be happy.

Avatar image for Cloud737

Yes! Yes!! PLEASE!!! :D I never thought I'd be saying this, especially since I always look down on takeover bids as being instruments of eliminating competition, however I already know Square's track record for providing great games and keeping quality constant... actually, no, I'm lying, their quality increases by the day! :P In any case, I seriously believe that if Square would take Tecmo, future games for the then Tecmo division would at least have the same quality as now, if not more. I greatly appreciate Square for it's practices, especially since they wanted to emphasize that their offer is unsolicited but still friendly (even though the deadline is kinda short... any suggestions why?). I really never thought I'd be saying this... I guess I really love Square for caring about it's customers. :D

Avatar image for enygma500

@ BlackTestament7 the only reason they made a kingdom hearts final mix version is cause the american version had extras that japan didn't at first. KH in japan didn't have sephiroth if im not mistaken. @N-flames SE has obviously shown its moving multiplat. right now they have exclusives for both systems on the go and multiplats. they used to favor the PS brand but not anymore

Avatar image for N-Flamez

NOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!! I like Temco games exclusive to Xbox, Sqaure would just put them on god damn Playstation!

Avatar image for N-REAL

As long as game quality keeps the same, I don´t see nothing wrong there.....

Avatar image for N-REAL

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

Avatar image for Rosvald

I think it is a good idéa. Here we have two great companies, and a merging may end up giving us games in style of Dead Fantasy. If you have not seen the Dead Fantasy videoes, i think you should. This posible merging have set my hopes up for either a real Dead Fantasy vid or game.

Avatar image for Windblade91

i hope u realize that any ff7 project, be it sequel or remake wont be annonced until next year at the earliest, ff7 is a franchise that a) sony wont allow them to screw up anymore b) they wont let themselves screw up. be patient, we have versus XIII as a exclusive if thats what u need. and the next main stories of KH r stil on PS only

Avatar image for BlackTestament7

Because of Square Enix's bs decisions dealing with releasing the Final Mix versions of the Kingdom Hearts series I just don't have much faith in the company. And they never made that Final Fantasy VII remake either. Until they do one of the two Square Enix can burn in hell.

Avatar image for Peter7474

*yawn* waste of money if u ask me

Avatar image for triniprince1420

If they were bringing Tomonobu Itagaki back i would've been happy but i dont even care cuz there's not going to be any more Ninja Gaiden and that series could've been even better in the future

Avatar image for Axe_336

Oh Square-Enix, You are the Activision-Blizzard of Japan aren't you... Or would that be the other way around?

Avatar image for Paladin_King

don't care, just want another Deception

Avatar image for infektious94

I'd even take a Dead or Alive RPG. Laugh all you want, but I thought the DOA characters all had pretty interesting personalities and stories, especially for a fighting game. I mean, look at the cast of Virtua Fighter and Tekken. Snooze-fest. Pertaining to cinema, I don't think Tecmo needs any pointers from Square-Enix. SE does some great movies, no doubt, but so does Team Ninja. Doesn't anyone recall the intro cinema for Dead or Alive 2 Ultimate, with Aerosmith's "dream on" song in the background? Clutch.

Avatar image for Holdwick

NOOOOOOOOOO!!!!! As much as I truly love Square... I'm probably one of their biggest fans, I thinking they're getting too large and I'm afraid of the "EA Effect"! I hope their game quality doesn't take a dive because they are too large and hard to manage!

Avatar image for Pete5506

Wow this could be a good thing

Avatar image for Juno2_17

Well this is really interesting. Should Square-Enix win this company over, there's potential for some great games in the future. Also, am I the only one that keeps thinking about MontyOum's "Dead Fantasy" online films at this point? ^That was Epic. XD

Avatar image for javierkatana

Ninja Gaiden with Square soft CG studio and their expertise in story telling, my god ist no brainer. EA should learn a bit of this kind of friendly takeovers, 30% premium can only come from gentlemen.

Avatar image for shabulia

This could be the best thing for Tecmo righht now. Square Enix Group bought out Taito and look how they have soared since then. Tecmo is in serious trouble but Square might just be Tecmo's saving grace. Hell, this might be just the move to bring Team Ninja back in full force with Itagaki-san at the helm again. I hope this goes through!

Avatar image for Linislight

HOLY CRAP! Does this mean a possible mash up like in the dead fantasy videos!!!!!!!!!! I hope tecmo says yes.

Avatar image for Timstuff

Square does not have a great track record for fighting games or action games. Acquiring Team Ninja would rectify both problems, and Square would be getting them if they buy Tecmo. This deal could potentially mean Square's name will evoke something other than RPGs for a change!

Avatar image for karnis

wow Itagaki kind of screwed them over & he is an perverted ass

Avatar image for Shadedgale