Square Enix says ‘wtf?’ to Koei/Tecmo merger

The games industry is turning into a geekier version of Dallas lately, with all the drama flying around the board rooms. There are new developments in the Square Enix/Koei/Tecmo love triangle, as Squeenix has responded to the rejection of its friendly takeover bid. The house of Final Fantasy was snubbed by Tecmo earlier today, before it announced that it was in talks with Koei and pursuing a merger. 

Square Enix would like some answers and has asked Tecmo to clarify what exactly is going on, and why the company’s offer was rejected. Here’s the official request:

The Company immediately requested TECMO for explanation of some issues as follows:

1. Please confirm that the decision on the start of discussions with KOEI toward integration of management is the reason for rejection of the Proposal.

2. If that is the case, please clarify concretely that major terms of integration of management with KOEI (form of the integration, stock prices assumption, integration ratio and so forth) are favorable for TECMO’s shareholders than the Proposal.

3. If not, please clarify that TECMO has an alternative plan, which is favorable for TECMO’s shareholders than the Proposal.

The Company will make definitive decision on its plan immediately after receiving a response from TECMO. 


I think the only sensible way for Tecmo to respond to this is to say: “I just don’t see a future for us. I’m sorry, it’s not you, it’s me.” There’s certainly a slight whiff of bitterness coming from the Square Enix camp here, especially with regards to the cynical swipe regarding Tecmo’s shareholders. Sadly, I foresee these kinds of shenanigans happening more and more as the industry begins to consolidate and plays for power are made.

Jim Sterling