Tecmo, Koei in merger talks

Spurning Square Enix's offer, the Ninja Gaiden-maker is reportedly considering a union with the Dynasty Warriors publisher.

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Last week, Square Enix sent waves through the game industry by announcing a "friendly" offer to buy Tecmo for around $200 million. The unsolicited bid would've added the action games of the troubled latter, which includes the Ninja Gaiden and Dead or Alive series, to the massive role-playing portfolio of the former, which features the Final Fantasy and Dragon Quest series.

While Square Enix's offer put a generous 30 percent premium on Tecmo's stock, it also had a firm deadline of Thursday, September 4. Today, Tecmo president Yasuharu Kakihara rejected it outright, according to the Reuters news service. Instead, the publisher announced is in talks to merge with another Japanese game label, Dynasty Warriors-maker Koei.

"Through a merger, we expect we can grow further by respecting both companies' identities and having an environment in which employees can fully exhibit their skills," the two companies said in a joint statement. Kakihara also said he would not consider another offer by Square Enix, which is considering its next move.

Tecmo shares rose 7.5 percent to ¥937 (around $8.70) on news of the merger, with Koei's stock climbing 0.3 percent to ¥1,552 ($14.41) and Square Enix stock sliding 1.9 percent to ¥3,550 ($32.96). Trading of both Tecmo and Koei shares were halted by the Tokyo Stock Exchange before the closing bell.

Financial details on the Tecmo-Koei merger remained unclear as of press time. However, even a union of the two companies would be around 30 percent the size of Square Enix, with just ¥40 billion ($371 million) in sales. It would also mark the latest round of consolidation in the Japanese game industry, which saw the formation of Namco Bandai in 2005, Sega Sammy in 2004, and Square Enix in 2003.

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    Avatar image for SteelTiger360
    SteelTiger360

    Well... at least its not Sammy (have you seen Sega these days ?) or a Japanese version of EA best of luck to both companies, I'm sure the Dynasty Gundam 2 game is going to rock, but I'm really waiting on DOA 5.

    Avatar image for guyvue
    guyvue

    I rather see Ninja Warriors than Ninja Fantasy. If Square-Enix buy Tecmo, Tecmo would just be a goner. The latest Square-Enix game I play was Disisdia FF, and the latest Koei game I play was Orochi Warriors 2, so it's fair, but I like Tecmo merging w/ Koei more, they both could made blood and gore.

    Avatar image for blueguykisame
    blueguykisame

    @jammer give them their time! -.- Rushed games (pretty much) ALWAYS fail. Example: MGS4 took how many years to develop? Bioshock and Mass Effect took their time aswell. Games like m&m racing for gba are the games that do not take their time. -.- I hope they take their time on this game.

    Avatar image for danwarecritic
    danwarecritic

    All Tecmo will do is make Dynasty Warriors rely too little on gleeful mayhem turning Koei into something it's better off not being.

    Avatar image for ZenMasterT07
    ZenMasterT07

    I hope the merger goes thru. Then maybe Tecmo can show Koei HOW TO DO Dynasty Warriors RIGHT!! I mean here's a franchise with all kinds of potential, marred by the most repetitive gameplay in videogame history, and we all know gameplay is what makes the game. Now do away with all the button-mashing, life-bars and special attacks, and implement a more technical style of gameplay, reminiscent of Bushido Blade. Pull in the camera a bit more. Give it a "Braveheart" feel of actually being in the battlefield. Also make bows available for use. Make it more realistic. Is that too much to ask? Think about what a kickass game that would make.

    Avatar image for jadefury27
    jadefury27

    a doa rendition of the dynasty warriors engine would be cool. kind of what gulity gear is attempting with their next title. this can only improve quality across the board, and hopefully they can bring other developers into the fold like arc systems works. square enix is a monster onto itself and this merger would've only overshadowed tecmo in the long run. besides straight forward action titles has never been square's stroung suit(koff*the bouncer*koff).

    Avatar image for jammer06
    jammer06

    i just which they should hurry up, and make the dead or alive 5 already

    Avatar image for skinntech
    skinntech

    lol get ready for dynasty dead or alive!!!! omg all the crappy hack and slash that koei has to offer with all the cleavage that tecmo can muster!! its gonna be craptastic. oh wait i play pc so what do i care?

    Avatar image for kingtrewq
    kingtrewq

    wow tecmo is stupid, sqaure is a great company, koei has yet to make a single triple AAA game, i guess they wanteed to look good in comparision, where in sqare they wold be overshadowed

    Avatar image for jets78
    jets78

    this deal will get done cause every body,s got a price for the million dollar man money, money , moneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeey,

    Avatar image for PsychoEmber
    PsychoEmber

    I recon if square enix did take over it would better tecmo. They have been talking about this for ages, and square enix deals are far better than koei. I wonder what the real story behind it is.

    Avatar image for vietboi89
    vietboi89

    WHAT?!?!?!? KOEI?!?!?! have they played the last dynasty game?! OMG idk wth Tecmo is doing but i hope to god Koei doesnt try to take over DOA and ninja gaiden and Musou those series, i would cry and turn sour and angry

    Avatar image for Hillsy_
    Hillsy_

    It's like two sides of a coin. If Tecmo merged with Square-Enix it might bring inbalance, too much power to one side. By going with Koei it keeps the sides of the coin equal. I'll be interested to see how this turns out.

    Avatar image for Neloy
    Neloy

    I think if Tecmo merges with Koei, it will be helpful for both of them in order to get back to competition.

    Avatar image for arcfear
    arcfear

    I hope Tecmo the best of luck.

    Avatar image for sivasiva
    sivasiva

    So ninja action is going to collaborate with dynasty warriors action... Cool..

    Avatar image for TehUndeadHorror
    TehUndeadHorror

    Aww Square Enix...

    Avatar image for kaisama88
    kaisama88

    It's really sad that most people only know about DW when talk about Koei.....*sigh* I'm the only one hope for a new Taiko Risshiden (some kind of historical role play, if you didn't know) with Ninja Gaiden style throw in in some part ?

    Avatar image for thestickman
    thestickman

    So... Ninja Gaiden: Dynasty Warriors edition is in the near future? o.O

    Avatar image for dtshakuras
    dtshakuras

    This is terrible. I'd rather Tecmo stay independent, but if Tecmo is going to merge it might as well be with Square Enix than Koei. I'd hate to see the Dead or Alive and Ninja Gaiden series run to the ground like the Dynasty Warrior franchise.

    Avatar image for Um_Wut
    Um_Wut

    if Capcom and Konami merged we would have the ultimate game developer right there. Everyone else could just throw in the towel.

    Avatar image for RaiKageRyu
    RaiKageRyu

    Prideful fools, chose Koei over SquareEnix. The fools.

    Avatar image for Axe_336
    Axe_336

    The blood and fighting combos of Ninja Gaiden mixed with the easy slaughter-fest of Dynasty Warriors? Sign me up!

    Avatar image for deactivated-59ff149c6b46d

    well maybe tecmo will make will make the DW games even better? or i dont know..

    Avatar image for blackjetf-14
    blackjetf-14

    This seems to be going nowhere very very slowly I don't see anoter DOA game till 2010(maybe)

    Avatar image for majere613
    majere613

    I wouldn't be at all suprised to see Square's bid now go hostile. Tecmo's board aren't exactly popular guys with their investors at the moment and a Tecmo-Koei merger's not going to set the world on fire. Either that, or Square might spend the money poaching Itagaki and as many of the Team Ninja staffers as possible.. :P

    Avatar image for 666_Laventine
    666_Laventine

    Wow! Didn't see that one coming. Guess we can expect the rest of our Ninja Gaiden games to play the exact same way for the next 6 games. A little dissapointing. I'm not saying this could be a bad move, but they could've acheived so much more with SquareEnix. Tch! Oh well, best of luck to them. Maybe now Dynasty Warriors will actually get better so I don't feel that I'm playing the same game over and over with too much repetitiveness.

    Avatar image for jargen88
    jargen88

    God damn this blows...

    Avatar image for zacattack214
    zacattack214

    Koei? Really? Well that was unexpected. I like the DW games, and Koei, but now I like them even more.

    Avatar image for akiwak
    akiwak

    After the merger SE will just buy them out, another merger.

    Avatar image for cfamgcn
    cfamgcn

    Square-Enix Namco Bandai Tecmo Koei Too many mergers... ~ de arimasu :P

    Avatar image for zeroadiel
    zeroadiel

    That was a interesting choice, I hope this doesn't come back to bite both of them in the behind since it will attack not just companies but the customers that love to play their games. And hey, you guys should know that SE has release some action games before since I wouldn't mind a SE with Koei would give some of Koei have some better storyline telling then re-telling the same old stories over and over ^^; Just my opinion

    Avatar image for joelgau
    joelgau

    Bad call by Tecmo. They should have gone with Square Enix. Koei's games are not nearly as good as Square Enix's

    Avatar image for shamarke
    shamarke

    ninja gaiden III what will happen???

    Avatar image for shamarke
    shamarke

    no RYUUUUU!

    Avatar image for CureForLiving
    CureForLiving

    Well it would have been interesting to see the results of a JRPG game company buying up a action game company. All we have now it two action game company merging, which doesn't really mean we'll be seeing anything special coming from them in the future.

    Avatar image for Everiez
    Everiez

    Maybe SE will go mad & decide to buyout KoeiTec after they merged.

    Avatar image for Hell-Fire21
    Hell-Fire21

    Tecmo fears Square...

    Avatar image for Everiez
    Everiez

    Haha..... fanboys rage. Hell, be grateful Tecmo consider merge with other company instead of gone from this world. I don't mind see Ninja Gaiden have a fluid move like DW6. Crappy may they be but who knows they'll be good partner. More over, some of you must be crazy just want SE-Tecmo merger to see FF girls e.g. Tifa & etc have their boobs jiggle around. LOL joke, the point is at least Tecmo not gone.

    Avatar image for Ket87
    Ket87

    Tecmo a troubled company in need of serious reform merging with a company which produces stale uninteresting games....great idea. I can already picture Ryu Hayabusa appearing in the next umpteen millionth Dynasty Warriors game.

    Avatar image for Pete5506
    Pete5506

    Better this then joinning with EA

    Avatar image for kerol_naim
    kerol_naim

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

    Avatar image for kerol_naim
    kerol_naim

    HolteEnder4Life Ninja Warriors? No... DOA Warriors instead

    Avatar image for angelbless
    angelbless

    Tecmo Koei - is just a way to escape of SEs bid.. but shareholders know they will get a higher premium with SE.. Anyway, we will see SE next move

    Avatar image for RadTad62
    RadTad62

    well if this all goes though samarai warriors and dynasty warriors will finally have blood so now mowing down thousands of enemy soldiers will be more exciting

    Avatar image for metroidsax
    metroidsax

    Square can keep to themselves. Maybe they'll step it up.

    Avatar image for Psychogenicscc
    Psychogenicscc

    Tecmo am Suckers ......Igataki leaving was a plus though

    Avatar image for matrixman2k
    matrixman2k

    Good. [deep sigh of relief]. I like things just the way they are.

    Avatar image for ocdog45
    ocdog45

    boring

    Avatar image for duckafro
    duckafro

    if you think about it...tecmo+SE doesnt make a good match considering tecmo is an action adventure type of company and SE is RPG. Tecmo with Koei would make a better match up since koei has the Dynasty series and with Tecmo, they can only get better.