News Room Contributor Posts: 8020 Joined: 12 Nov 2002 | Square Enix Proposes Tecmo Takeover
Square Enix has announced its intention to launch a friendly takeover bid for troubled Japanese videogame company Tecmo.
The company submitted a proposal for the takeover to the Tecmo board of directors today, seeking their consent for the takeover bid. The conditions of the proposal must be consented to by September 4, and should the Tecmo board fail to respond or not give consent by that date, the planned friendly takeover as outlined in the proposal will not take place.
"Videogames have been globally recognized as a major entertainment genre, and have now become an industry receiving considerable attention in terms of market size and growth potential. In the meantime, the game industry in Japan is standing at a critical juncture whether it continues to be a center of the videogame industry in the world, or not," Square Enix said in a statement.
But citing the recent, well-cataloged troubles at Tecmo as a major factor in the decision to offer the acquisition, the statement continued, "Tecmo is a group of excellent creators with proven track-record in the global market, which is a precious human resource of Japan. 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 the Square Enix Group, which will provide the group with further growth opportunities as well."
Square Enix is seeking more than half of the outstanding shares in Tecmo, although it has placed no upper limit on the amount it wishes to acquire, and is offering $8.46 per share, a 30 percent premium over the August 28 closing price of $6.49 per share.
Tecmo has been beset by internal difficulties in recent months, including the departure of Team Ninja head Tomonobu Itagaki and his subsequent lawsuit against the company, as well as lawsuits alleging shady payment practices filed by other employees and the sudden resignation of president Yoshimi Yasuda, who was secretly recorded making statements supporting the allegations of Itagaki and others. The company has not yet responded to the proposal, and whether Square Enix will walk away quietly from the deal if Tecmo declines their offer, or pursue it more aggressively, remains to be seen.
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Paperboy Posts: 42 Joined: 24 Jul 2008 | It doesn't sound like a very hardcore deal to me... the terms are not that cutthroat.
It is interesting to note that if this goes through, SE will own majority stakes in both Taito and Tecmo. |
Beat Writer Posts: 201 Joined: 11 Apr 2008 | I'm intrigued, especially since Tecmo's usual offerings are outside of SE's usual strengths. This could be a very good deal for both sides, especially if SE's first move is to appease team Ninja and get them back on board.
AS stated above, the terms are fairly generous as well. Not cut throat at all. |
Gone Gonzo Posts: 2161 Joined: 14 Nov 2007 | I'm liking the sound of this. Imagine a Final Fantasy 7 remake with a control scheme similar to Ninja Gaiden's. Cor, makes me silly just thinking about it... |
Paperboy Posts: 42 Joined: 24 Jul 2008 | Forget that, imagine Space Invaders with ninjas! |
Anonymous Source Posts: 3 Joined: 29 Aug 2008 | Could you imagine a ninja gaiden themed kingdom hearts world? |
BANNED Posts: 681 Joined: 6 Dec 2007 | What about a ninja game with ninjas in which you play a ninja?
Yeah, that's just dumb. |
Infamous Scribbler Posts: 575 Joined: 21 Jun 2008 | HalfShadow:
What about a ninja game with ninjas in which you play a ninja?
Yeah, that's just dumb.
I kinda liked Tenchu, though anything beyond Wrath of Heaven is garbage.
I see this as a good thing on part of Tecmo, in general they have been waining over the years. Perhaps this deal will make them wholly relevant again? |
BANNED Posts: 829 Joined: 9 Aug 2008 | Malygris:
should the Tecmo board fail to respond or not give consent by that date, the planned friendly takeover as outlined in the proposal will not take place.
So they're going to take hostile action and assassinate them if they don't cooperate? |
Gone Gonzo Posts: 1664 Joined: 9 Aug 2008 | Is this so they can pussify Ryu Hayabusa and drop him in the next Kingdom Hearts game? |
Wordsmith Extraordinaire Posts: 10317 Joined: 28 Nov 2007 | Honestly, I don't care. FFXII was all right, Dragon Quest VIII is awesome, and I am cautiously optimistic about FFXIII. But other than that, I don't care about SE. And DOA is an awesome fighting game. With boobs. |
Beat Writer Posts: 126 Joined: 17 Aug 2008 | Ivoryagent:
Malygris:
should the Tecmo board fail to respond or not give consent by that date, the planned friendly takeover as outlined in the proposal will not take place.
So they're going to take hostile action and assassinate them if they don't cooperate?
Totally. With ninjas. ^_- |
Square Enix Proposes Tecmo Takeover
Square Enix has announced its intention to launch a friendly takeover bid for troubled Japanese videogame company Tecmo.
The company submitted a proposal for the takeover to the Tecmo board of directors today, seeking their consent for the takeover bid. The conditions of the proposal must be consented to by September 4, and should the Tecmo board fail to respond or not give consent by that date, the planned friendly takeover as outlined in the proposal will not take place.
"Videogames have been globally recognized as a major entertainment genre, and have now become an industry receiving considerable attention in terms of market size and growth potential. In the meantime, the game industry in Japan is standing at a critical juncture whether it continues to be a center of the videogame industry in the world, or not," Square Enix said in a statement.
But citing the recent, well-cataloged troubles at Tecmo as a major factor in the decision to offer the acquisition, the statement continued, "Tecmo is a group of excellent creators with proven track-record in the global market, which is a precious human resource of Japan. 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 the Square Enix Group, which will provide the group with further growth opportunities as well."
Square Enix is seeking more than half of the outstanding shares in Tecmo, although it has placed no upper limit on the amount it wishes to acquire, and is offering $8.46 per share, a 30 percent premium over the August 28 closing price of $6.49 per share.
Tecmo has been beset by internal difficulties in recent months, including the departure of Team Ninja head Tomonobu Itagaki and his subsequent lawsuit against the company, as well as lawsuits alleging shady payment practices filed by other employees and the sudden resignation of president Yoshimi Yasuda, who was secretly recorded making statements supporting the allegations of Itagaki and others. The company has not yet responded to the proposal, and whether Square Enix will walk away quietly from the deal if Tecmo declines their offer, or pursue it more aggressively, remains to be seen.
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