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Koei to Buy Tecmo

by Francesca DiMola - November 20, 2008, 8:16 am PST
Total comments: 12 Source: Reuters

Following the decline of the Square Enix offer, Tecmo and Koei are now ready to merge.

In a stock deal worth approximately 20 billion yen ($207 million), Koei and Tecmo agreed to merge under a holding company in April 2009. Tecmo will exchange 1 of each of their shares for 0.9 shares in the new company, Tecmo Koei Holdings, while Koei would have a one to one exchange for their current shares.

Both companies agreed to the merger after Tecmo declined the takeover bid from the larger company, Square Enix earlier this year. According to Tecmo, Koei will "give [them] a greater chance of boosting corporate value."

Fierce competition within the gaming market alongside escalating costs for marketing and development have led game companies to seek alliances in order to decrease cost and increase profit.

The companies are projecting that the merger will generate an operating profit of over 16 billion yen by the year ending March 2012 with sales reaching 70 billion yen.

Talkback

ThePermNovember 23, 2008

cool now square can buy koei, or nintendo

ShyGuyNovember 24, 2008

What does this mean for Itagaki.

It means he can sue a holding company with more money than Tecmo alone.

Flames_of_chaosLukasz Balicki, Staff AlumnusApril 01, 2009
StogiApril 01, 2009

balls that's ugly

CONFIRMED: Tecmo Bowl 2009 to feature teams consisting of legendary Shogun Warriors fighting for territorial control in ancient Japan, all new animations, and an exciting new turn-based passing game.  Look out for it soon!

Also confirmed: Another joke about Shogun Warrior Princesses wearing bikinis.

Ian SaneApril 01, 2009

So in the end is there only going to be like four videogame publishers?  We're becoming like the film and music industries.  It was probably inevitable but still a bummer.

KDR_11kApril 01, 2009

Nah, as the old wood rots away new trees grow.

Quote from: Ian

So in the end is there only going to be like four videogame publishers?  We're becoming like the film and music industries.  It was probably inevitable but still a bummer.

Not if Nintendo has its way! WiiWare, DSiWare... refusal to subscribe to business models that encourage giant company-ism... refusal to buy up companies left and right.

TJ SpykeApril 01, 2009

Quote from: KDR_11k

Nah, as the old wood rots away new trees grow.

But there are not really any new major publishers. If I had to name the major publishers left: Nintendo, Sony, Microsoft, Square Enix, Sega Sammy, Namco Bandai, Activision Blizzard, Tecmo Koei, Disney Interactive, Konami, THQ, Ubisoft, Midway (for now), Capcom, Atari, Take-Two Interactive, Electronic Arts. I think that's it, pretty much everyone else would be mid-sized or small publisher. That is still more than the film industry and music industry though, both of which only have about 6 or 7 major publishers.

GoldenPhoenixApril 01, 2009

It doesn't bother me much because Eidios has been declining for years. Most of the publishers who are getting bought up haven't really done anything great for quite awhile.

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