Tecmo Rejects Square Enix Buyout Offer, In Merger Talks with Dynasty Warriors Owner Koei

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Japanese game developer Tecmo today rejected the buyout offer from Final Fantasy and Dragon Quest owner Square Enix, instead opting to pursue merger talks with Dynasty Warriors veterans Koei.

Both Koei and Tecmo "have excellent financial positions, strengths and the ability to take advantage of each other in order to improve profitability and solidified the foundation of a worldwide leader," according to a Tecmo statement translated by Kotaku.

At the time of the "friendly" buyout offer, Square Enix noted that it would not further pursue the Tecmo buyout if the proposal was rejected.

Whereas Koei is best known for the battlefield-slashing Dynasty Warriors series, Tecmo has been recently defined by its fighting series Dead or Alive and action-heavy Ninja Gaiden games. Both of those franchises were helmed by Tomonobu Itagaki, who recently left the company and sued for unpaid bonuses.

Tecmo's once Itagaki-led studio Team NINJA is still at work though, with three new titles said to be revealed at the Tokyo Game Show.

From The Chatty
  • reply
    September 4, 2008 9:38 AM

    Wow this is actually a dumber match in my opinion. I don't much care for square enix's games anymore, but technologically they are still often impressive. Dynasty warriors? Not so much....

    Tecmo really is a sinking ship huh?

    • reply
      September 4, 2008 10:35 AM

      May just be a matter of the controlling power. Perhaps with the merger those who matter / care will still have the power they want where in with Square they may not.

      /shrugs

    • reply
      September 4, 2008 6:46 PM

      I agree. Even though Square-Enix's games have left me uninspired now, they do have a lot of financial weight backing them.

      Koei haven't left many substantial heavy-hitters in regards to video games, though a merger with Tecmo may strengthen Koei.

      I also, agree with Breadsticks, that a merger with Square-Enix may weaken the company.
      imagine having to fight ideas3 ways over just 2. Passing ideas back and forth between executives and developers and... it just sounds messy. So I don't know either.

      Guess we'll see what happens.

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