Japanese games giant Square Enix has offered to buy a majority stake in game developer Tecmo with an $8.50 (920 yen) per share offer–a 30 percent premium over the company’s closing share price Thursday.
Square Enix, best known for the popular “Final Fantasy” and “Dragon Quest” series, is giving the company until September 4 to reply, and it will withdraw its proposal if Tecmo should fail to reply or reject the deal.
Although the deal would allow Square Enix to acquire Tecmo’s well-known titles such as “Ninja Gaiden” and “Dead or Alive,” Square Enix believes the transaction will benefit both companies.
Square Enix President Yoichi Wada said in a company statement that even though Tecmo is an excellent company, Square Enix “cannot be optimistic about the future of this significant resource, given the current circumstances surrounding Tecmo.”
The "current circumstances” refer to the recent departures of Tecmo President Yoshimi Yasuda as well as game developer Tomonobu Itagaki (who created the “Dead or Alive” series and the “Ninja Gaiden” remakes). Also, the company has been plagued by lawsuits–put forth by Itagaki and other employees–that claim Tecmo withheld bonus pay.