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.

323 Comments

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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Sandrock323

"will NOT acquire the Tecmo shares through the TOB as planned in the proposal" Dose this mean a hostile take over if the proposal is not excepted?

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Ownsin

First Comment!, and no! Tecmo dont accept Square E. take over, i think they are stupid company that only makes rpgs from the same type over and over, so dont!

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PenguinGod19

Hmm maybe we will be able to get a decent Monster Rancher game again. I have a feeling Square Enix would be able to find the right mixture of monster raising and RPG elements, as well as graphical quality, to really bring the game back to its roots and revive the title.

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Giangio

This should be pretty awesome. Who knows what the talent from both developers combined can come up with. Square needs to shed its image of being The Final Fantasy People and Tecmo is in a bad situation right now. Theyll have to come up with a completely new name though, no more mishmashing it would be ridiculous Squenitec!?

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windisch

Branching a little farther out from RPGs now, eh?

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Dixteel

haha...Final Gaiden, I will second that. Now...is SE going to make the chest of DOA females smaller or not?

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Hinduce

I hope this happens because it would be sad to see this company go down. But, its not the company that makes games its the people who are employed and im sure they could find jobs again. But i hope that it doesn't get that far. Square-Enix... put your cape on and save 'em.

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Katra

I don't think square will have a new name if temco takes the deal since they are buying them out instead of partnering.

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bawathegamer

200mil. Thats it? I though tecmo was worth more.

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xxThyLordxx

good. now Ninja Gaiden series will be multiplatform.

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Dixteel

wow, I didn't know Tecmo was down to the point of needing "rescue". Thinking of the possibilities of the take-over...: FF characters in DOA, and DOA: Beach Valleyball, haha. Maybe Square Enix would try to make the chests of Tecmo games' female character smaller...is that a good thing or a bad thing...hmm...

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jammitin

Tecmo would stupid not to take it. I've been disappointed in them for awhile now.

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OfficialBed

hmm...very interesting...i wonder what the new name will be

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the_greenzero

Cool.

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muppen

Wow, would be cool if it all works out...imagine DoA 5 and Ninja Gaiden III with the graphics of FF XIII :D

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SUPER_FLY_

whats next final gaiden?

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Lord_Artix

Well that was unexpected. But I can't really see a SE-published Ninja Gaiden.

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HStakes7

Tecmo shows weakness, SquareEnix POUNCES!

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thanos723

what would the new company be called square tenix? square tecnix? tecsquare enix? I NEED TO KNOW!!

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Zalzargahoughan

huh, didn't see that one coming.

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nobeaner

This would give SquareEnix a really great franchise.

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belwyrm

Seems clearcut on the surface, makes you wonder what's happening behind the scenes at both companies. Square wouldn't do this for no reason.

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Roxas12345

this is really an awsome game to play.