TOKYO — Game software developer Tecmo Ltd said Thursday it has agreed with game maker Koei Co to launch merger talks, rejecting a takeover offer by much larger rival Square Enix Co. The announcement came on the deadline date set by Square Enix for Tecmo to say whether it agrees with the major game software maker’s plan to buy a more than 50% stake in Tecmo for 920 yen per share.
Square Enix, the producer of popular game software titles such as the Dragon Quest and Final Fantasy series, has said it would not launch the over 10 billion yen bid without approval from Tecmo. Tecmo and Koei, both listed on the First Section of the Tokyo Stock Exchange, said they will set up a committee to consider their integration in detail. They said their merger should be beneficial for each other as it would help them retain their talented employees and a stable environment for game development, and maintain and develop their brands. Tecmo, the maker of the Dead or Alive video game series, reported 12.05 billion yen in group sales in calendar 2007.
Source: JapanToday