backtop

Print E-mail del.icio.us 15 comment(s) - last by BruceLeet.. on Sep 6 at 11:38 PM
Tecmo rejects Square Enix take over offer in favor of merger talks with Koei

According to Japan Business News site Nikkei Net, game software developers Koei Co. and Tecmo Co. have begun merger talks with the goal of integrating their operations. In a joint press release, Koei and Tecmo said that they have decided to set up a committee with the understanding that they will be working toward a merger.

Koei, which specializes in history-themed games, such as the popular “Dynasty Warriors” series booked 29.1 billion Yen ($269M USD) in group revenue for the fiscal year ended March 31. Tecmo, a midsize player, posted group sales of 12 billion Yen ($111M USD) for the year ended December 2007.

In late August, Square Enix, known for its "Final Fantasy" and "Dragon Quest" game series, submitted a proposal to Tecmo's board of directors, in which the company is seeking to buy Tecmo shares for 920 Yen ($8.50 USD) per share in a tender offer which may be worth at least 11 billion Yen. The proposed price is about a 30% premium to Tecmo's closing price of 706 Yen ($6.59 USD) before the tender offer news.

Tecmo rejected this offer according to a translated statement on Kotaku.

For Tecmo, this proposal was received in a short span of time, but within the company, we collected opinions from management and game creators as well as a wide range of employees.

In our companies source of revenue, as a result of a guarantee with our capable workers, a guarantee of steady game development and the preservation of our brand, there is a high possibility of improvement. However, we did not arrive to agree to this proposal, and thus, our Managing Board declines the offer.

Stockholders, clients and customers, please continue your favor towards our company.

Square Enix Co. said Thursday that it is asking smaller game software developer Tecmo Ltd. to specifically show how the planned merger with Koei Co. would benefit Tecmo's shareholders. Square Enix said in a press release that it is asking Tecmo that if the merger ratio, a basis of Tecmo share value, and other matters are more beneficial to Tecmo shareholders than the offer Square Enix has provided under its tender offer proposal.

Square Enix said it will decide on a response once it receives a reply from Tecmo.


Comments     Threshold


This article is over a month old, voting and posting comments is disabled
Interesting
By FITCamaro on 9/4/2008 8:47:59 AM , Rating: 2
I would think they'd want to merge with SE considering they're one of the most successful games developers of all time. And they don't have to put out crap like EA does to make money.




RE: Interesting
By MPE on 9/4/2008 9:38:46 AM , Rating: 3
SE is not asking to merge - it is a buy out. Two different things. Merge means your stocks are revalued since two companies are now just one. In a buy out, the company's stock is paid, value depending on the agreement (usually more than the current stock price). You lose all of your power as a stock holder in Tecmo since you company in all essence is gone. All control are relinquished to SE stock holders and its board.
Merge is good for companies that needs better cash flow and backing from creditors.
Buy out is ideal when you have good assets but stock is overvalued and have difficulty meeting profit expectations.


RE: Interesting
By FITCamaro on 9/4/2008 12:29:31 PM , Rating: 1
Sorry. Yes I know the two are different things. I just meant that it is strange that they wouldn't want to be a part of SE.


RE: Interesting
By foolsgambit11 on 9/4/2008 3:27:57 PM , Rating: 3
We should offer Iraq statehood - I just mean that it is strange that they wouldn't want to be a part of the U.S.

In reality, it would be worse than statehood - they wouldn't get to vote. More like a colony than a state.

It's all about self-determination. Thus ends my allegory.


RE: Interesting
By whiskerwill on 9/4/2008 11:03:56 PM , Rating: 3
Puerto Rico and Guam are part of the US but don't get to vote.


RE: Interesting
By Motoman on 9/5/2008 4:53:07 PM , Rating: 2
...actually I thought they did get to vote...?


RE: Interesting
By BruceLeet on 9/6/2008 11:38:43 PM , Rating: 2
United Stats of AmerIraq


Possible Results of the Merger
By Loveless on 9/4/2008 9:31:52 AM , Rating: 4
This is quite interesting as it may breathe new life into Koei's lineup of games. Just think:

Ninja Gaiden Warriors
Dead or Alive Warriors
Dead or Alive Xtreme Beach Volleyball Warriors




RE: Possible Results of the Merger
By Spivonious on 9/4/2008 10:27:33 AM , Rating: 3
What about Super Tecmo Bowl Warriors?


RE: Possible Results of the Merger
By chick0n on 9/4/2008 11:04:06 AM , Rating: 1
How about Dead or Alive & Ninja Gaiden & Dynasty Warriors.


By noirsoft on 9/4/2008 1:13:46 PM , Rating: 3
If the SE deal went through, I would certainly be interested in Dead or Alive vs Girls of Final Fantasy Xtreme Bouncy Beach Mud Wrestling or whatever they call the next one.


Who cares..
By DASQ on 9/4/2008 10:36:51 AM , Rating: 2
As long as they keep churning out Romance of the Three Kingdom games.




RE: Who cares..
By Myg on 9/5/2008 3:23:51 AM , Rating: 2
I agree, the last version they made for the SNES was amazing. Couldnt stop playing it as a kid.


I knew
By elpresidente2075 on 9/4/2008 12:39:49 PM , Rating: 3
I knew the value of the dollar was tanking, but I never expected 700 yen to be worth more than 100m dollars...




By slashbinslashbash on 9/4/2008 2:14:19 PM , Rating: 2
I know Dynasty Warriors and ROTK must be cash cows by now, but I wish they'd be a bit experimental and come out with some other strategy games with different themes, like my favorites Genghis Khan on the NES (basically ROTK but with a wider worldview) and AeroBiz on the SNES. Those were awesome games!




"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes








botimage
Copyright 2008 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki