With a deadline looming, Tecmo rejected takeover from rival Square Enix.
Now, it's exploring a merger with a different game outfit, Koei
When Japanese video game developer Square Enix unveiled its "friendly" offer to buy rival Tecmo last week, analysts and investors applauded. The two companies seemed a natural fit: Square Enix's Final Fantasy and Dragon Quest series had a huge following among diehards in Japan, while Tecmo's Ninja Gaiden and Dead or Alive fighting games were popular in the U.S. and Europe.
When Japanese video game developer Square Enix unveiled its "friendly" offer to buy rival Tecmo last week, analysts and investors applauded. The two companies seemed a natural fit: Square Enix's Final Fantasy and Dragon Quest series had a huge following among diehards in Japan, while Tecmo's Ninja Gaiden and Dead or Alive fighting games were popular in the U.S. and Europe.
To sweeten the deal, Square Enix President Yoichi Wada pledged to preserve the Tecmo brand. He gave Tecmo's management a week to think it over.
On Sept. 4, with a midnight deadline looming, Tecmo said no to Square Enix's takeover bid. A couple of hours later, Tecmo revealed why: The $110 million Tokyo company was exploring a possible merger with a different Japanese game maker, Koei. The two said they would form a joint committee to discuss a plan. Koei President Kenji Matsubara told reporters they would spend the next two months drawing up a detailed plan.
Read the full "Tug-of-War Among Japanese Video Game Makers" Business Week article here...
On Sept. 4, with a midnight deadline looming, Tecmo said no to Square Enix's takeover bid. A couple of hours later, Tecmo revealed why: The $110 million Tokyo company was exploring a possible merger with a different Japanese game maker, Koei. The two said they would form a joint committee to discuss a plan. Koei President Kenji Matsubara told reporters they would spend the next two months drawing up a detailed plan.
Read the full "Tug-of-War Among Japanese Video Game Makers" Business Week article here...