Square Enix Backs Down from Tecmo Takeover Bid, Looks for Other Buyout Targets

Square Enix, which recently made "a friendly offer" to buy a controlling stake in Japanese publisher Tecmo, has withdrawn its proposal following a rejection from the beleaguered game company.

The Final Fantasy-producing giant isn't done hunting, however. "We are talking with quite a few companies in and outside of Japan. We are routinely in such talks," said Square Enix president Yoichi Wada as relayed by Reuters.

Tecmo, best known for its in-house Team NINJA creations Dead or Alive and Ninja Gaiden, rejected Square Enix's offer yesterday and instead entered negotiations with Koei, the Japanese publisher known for its battlefield hack-and-slash Dynasty Warriors series.

Square Enix publicly asked Tecmo to explain itself, but was ignored. "Followed by the notice, [Square Enix] immediately requested TECMO for explanation of some issues to receive no response to it, even reasons of the rejection," read a Square Enix statement issued today.

The attempted merger was the latest in a string of acquisitions from the mega-studio. Square merged with Dragon Quest developer Enix in 2003, forming Square Enix, and then purchased Space Invaders owners Taito in 2005.