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 tom2b

Square-Enix is learning well from it's new masters: Micro$oft. Soon it shall no longer be known as Square-Enix, it soon will be...$QUARE-ENIX!!!!

Avatar image for Briantb_2008

This I really don't mind square soft kicked ass for it games and when it combind with enix the games just got better I can only see it happening again just don't change the name.

Avatar image for Gamingcucumber

This is a win/win situation for me. Kingdom Hearts backed up with Ninja Gaiden quality gameplay could be interesting.

Avatar image for Madjik2k2

Thank you Square Enix! This is wonderful news given the slew of trouble that Tecmo has been in lately. I'd rather not see the loss of the great games Tecmo has produced over the years and this will give them some breathing room should they accept. Sure, Square will now have some say in how things are done, but they aren't all that bad a company anywho. This has potential to be very beneficial to both companies and I hope it works out in the end.

Avatar image for xdeiri

Keep your hands off tecmo you sony lovers, we don’t want our beloved doa on the ps3 , equare enix is turning to an evil monster with a life hp of 200 m , fight back ( cloud tecmo )

Avatar image for buffdaddy69

Do you think Square will pay cash or gil?

Avatar image for Czenkus

Interesting, that is for sure.

Avatar image for chiggins28

who cares if microsoft looks into this? geez you people think you are standing for something by saying ms has a monopoly. give me a break, its business. nothing you say on this forum is going to change anything at all. anyways, this is good for tecmo, post lawsuit.

Avatar image for Darkstar_Sinada

Wow, a take-over offer I can actually be excited for. You know why? Square Enix != EA.

Avatar image for ralphikari

A tempting offer but Tecmo should look at where Taito have gone along with their most popular franchises.

Avatar image for Yongying

Should have hired itagaki imo. Sqaure you do the story and the graphics let him handle the gameplay! :P

Avatar image for siLVURcross

Interesting. Wonder how it'll turn out in the end.

Avatar image for onlinedevil13

wow, i lik this idea, lol tecmo should join square enix n tak over da world, i wouldnt mind if final fantasy was everywhere xD

Avatar image for KiNgAlBo23

that would be good for both sides

Avatar image for Henninger

Not big on turned-based RPGs but Square Enix has a proven track record so this could b big if Square Enix doesn't mess it up. I personally think they won't.

Avatar image for ukillwegrill

MS should get on it.

Avatar image for PSdual_wielder

I think if the takeover goes through, it will be a good thing. For one, Tecmo is really in serious trouble, and at least someone is nice enough to save their butts. And the whole "non-hostile" bid is an obvious response that SE is a much more friendly company than EA.

Avatar image for Shtinky

Please don't accept Tecmo.

Avatar image for jeffokiecorry2

Now we can have Super Ninja Fantasy Frame!

Avatar image for CobaltJewel1

The line about a "great leap forward" really worries me. Didn't the last one of those not turn out so well?

Avatar image for Viral-venom13

This bid is a great idea as a fusion between Tecmo and Square could make for some rather cool game creations in the future!

Avatar image for Ninjak

microsoft should buy tecmo. keep DOA, Fatal Frame alive, NG alive for xbox360. i am pissed at tecmo for making fatal frame 4 for Wii only.

Avatar image for agentplatypus

Nintendo technically owns the Fatal Frame license now so it won't matter to me if Square takes over Tecmo.

Avatar image for nparks

Awesome. Imagine an action RPG set in the DOA universe that plays combat like a fighter, much like Mass Effect blended RPG and shooter gameplay. Square's no Bioware, but they're still probably the second best RPG house around and could do a good job with that. Wonder if Itagaki would consider returning if this went down?

Avatar image for Taegre

I suppose if it keeps Fatal Frame alive, they can go ahead. But I'd be just as worried about Square Enix's stability in the future as we are now with Tecmo. If the next Final Fantasy game and spin-off turn out poorly, that could be the last straw for a huge portion of their overseas fanbase.

Avatar image for Imagine09

lol. TheGreatGuero 'keep your final fantasy out of my ninja gaiden' there wont be a ninja gaiden 3 if Tecmo doesnt accept Square Enix's offer

Avatar image for stevo_360


Avatar image for Aurey

All right, as long as the guys at Square Enix let Team Ninja work on DOA and NG this is good news, does any of you think they're going to hire Itagaki again? I guess it would be for the best. If this works maybe we'll end seeing some Final Fantasy characters brawling on DOA5. Time will tell.

Avatar image for Olaoye_tw

This is probably Tecmo's last chance.....

Avatar image for xwestsdeaznx

Square Enix is eating companies left and right

Avatar image for Sparticus1013

I hate this crap. All the developers are being assimilated into one another. EA, Activision/Blizzard, now this. It's all very unsettling to me.

Avatar image for Andy72774

microsoft should go play in traffic... d@mn monopoly

Avatar image for 360player_eq12

give me DoA 5.

Avatar image for darris5000

if i was them i would tack it

Avatar image for LinconSixEcho

This could be interesting and fun or epic fail.

Avatar image for deactivated-5bdcf25e4f65e

Microsoft should buy Tecmo.

Avatar image for Triplekill

Finaly we can have breast physics on Final Fantasy!!! YAY!!!!!!!

Avatar image for TheGreatGuero

Keep your Final Fantasy out of my Ninja Gaiden. :(

Avatar image for KlausRottingham

A Final Fantasy Fighting game is possible. I'm all for this game.

Avatar image for WiiNut6493

tecmo is screwed if they dont take this. i mean with the 5 million lawsuits against them they would be wise to take it.

Avatar image for courtneyoconnel

is it really friendly?

Avatar image for blue-peregrine

Taito is already a subsidiary of Square-Enix, so why not Tecmo?

Avatar image for doorsofparadise

square is the *** EA who knows who they will come for next

Avatar image for NuKkU

thats awesome the more RPG's the better so more workers= more RPG's

Avatar image for TWiSTEDmerc

That would indeed be a change for Enix & Tecmo, I can't think of a single game made by Square that wasn't an RPG. This is likely Tecmo's only logical choice and as long as the next Ninja Gaiden doesn't end up being a RPG, this would be a fine merging.

Avatar image for jcasanova

It would be nice a fighting game with Final Fantasy or othr Square Enix characters!! Think about mixing Square Enix games with Ninja Gaiden!! This purchase could bring interesting games!

Avatar image for Virtual_Erkan

TECMO must not fall! It is a great game company. It has faced lots of troubles this year but thanks to Square Enix for doing such wonderful charity.

Avatar image for BigC43

Microsoft should look into this...