AUG. 28, 2008 • Square Enix announced a friendly takeover bid for Tecmo. The former would purchase a majority of Tecmo stock for ¥920 ($8.60) a share, a premium over the ¥708 ($6.62) Tecmo shares were trading at. The offer was made after legal difficulties had forced Tecmo’s president to resign. Square Enix said it would operate Tecmo under a holding company, and would allow the latter’s management and identity to remain intact. On Sept. 4, Tecmo rejected the offer, and said it was pursuing a merger with Koei instead.
Impact: Tecmo has been publishing arcade oriented video games since the 1980s. The company has had an emphasis on arcade sports and fighting titles, including the popular Dead or Alive series. Square Enix has been best known for a very different type of game, RPGs. However, Square Enix, along with most Japanese publishers is trying to diversify its product portfolio. In 2005 Square Enix bought arcade publisher Taito, th company behind the huge 1970s hit Space Invaders. Koei is similar to square Enix in that they are best known for strategy games, often with a historical focus. A merger between Koei and Tecmo would basically result in a company with a broader product portfolio.
