Tag Archives: buyout

Koei boss Kenji Matsubara has said the company’s merger with Tecmo is all about staying alive in the modern climate, and that further acquisitions may be made by the newly formed firm.

“In the 3 trillion yen ($28 billion) global games market, we have revenue of 40 billion yen, which begs the question of whether we can survive,” Matsubara said.

“We plan to make the most of this merger and move on to the next step, which may include acquisitions.”

As previously reported, a holding company will be formed to ease through the merger next year.

More on Bloomberg.

Tecmo and Koei have announced that a solid plan to merge the two companies will be in place within two months, Kotaku reports.

“A committee has been formed to oversee the business of the two newly-merged companies, comprised of the presidents of both companies (acting as joint-chairmen) as well as executive representatives and non-executive representatives of both companies,” said the firms in a statement.

“This integration will allow employees to demonstrate the full extent of their abilities, so as to best serve the company in the future. This committee is expected to produce a concrete integration scheme for unifying the two companies in the next two months.”

The new emerges after Tecmo shrugged off Square advances at the beginning of September.

Speaking to Spong, Valve’s Doug Lombardi has branded speculation of Google being poised to buy the firm as “100 percent rumour.”

The Inquirer originated the talk, as you can see here.

This Inquirer piece is rumouring that Google may be moving to buy Valve.

The story cites “well-placed sources” and was filed from Austin GDC.

If true, Steam is the main target, says the site.

Also, it would be contrary to comments from Gabe Newell at Games Convention last month. Snip from the interview:

So you’ve got no interest in selling Valve?

GN: Right now we’re super-happy. We’ve been an independent company from day one, and we think that that contributes to our good decision-making. We’re much more concerned about finding more people that are like us and want to work with us – and doing a great job for customers – than looking for people that want to buy the company.

Have you had any approaches for the company?

GN: I get approached a couple of times a week by people saying, ‘Can we invest in you, can we buy you?’ That’s been true for several years. We’re having too much fun.

Full thing through the link.

Take-Two’s shares have plummeted this morning, dropping nearly 30 percent in the wake of news that EA has given up on buyout talks.

In pre-market trading, Take-Two’s stock has plunged $6.44, or 29.4%, to $15.45.

More on Barron’s.

If you bought into the Take-Two dream in the past few month, you might do best to hold onto your hat: Wedbush Morgan just revised its price target from $26 to $16.50.

The news comes in the wake of confirmation that buyout talks between the GTA publisher and EA are now officially over.

“Notwithstanding significantly better than expected Q3 results, we continue to question the sustainability of earnings, and wonder about the potential for a ‘bidding war’ to attract several key employees,” said WM analyst Michael Pachter.

See the full note after the link.

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FreeStyleGames has sold out to Activision, the publisher confirmed this morning.

The UK studio developed B-Boy for PS2 and PSP. It is currently working on Guitar Hero content for Acti-Blizz.

“Activision Publishing is the undisputed leader in the music-based games and we see tremendous opportunity for continued growth, particularly in Europe,” said Activision boss Mike Griffith.

“An important part of our European growth strategy is to work with local developers and provide music content that resonates with the market. FreeStyleGames has an award-winning team with a history of developing innovative and creative music-based games and they are uniquely positioned to help us expand our leadership in the genre.”

Press release after the link.

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Kotaku has taken the time to translate Tecmo’s answers to Square Enix’s questions as to why the firm rejected its offer earlier this month.

Basically, it all boils down to “the decision to begin merger talks with Koei.”

Read all about it through the link.

By Mike Bowden

Following news that Tecmo had spurned Square Enix’s offer to buy the firm, and had instead started serious negotiations regarding a Koei merger, Square formally withdraw its bid last night.

It also emerged that Square has asked questions of Tecmo as regards to the move, but had received no response. The Square statement reads:

The Company yesterday received a written notice of the rejection of the Proposal from the board of directors of TECMO. Followed by the notice, the Company immediately requested TECMO for explanation of some issues to receive no response to it, even reasons of the rejection.

Under such circumstances, the Company is unable to make appropriate modifications to major terms of the Proposal including the TOB price, and determines that it is extremely difficult to continue the discussions with TECMO based on the Proposal. The Company, therefore, has decided to withdraw from the Proposal.

Thanks, Kotaku.

According to this Kotaku piece, Tecmo has formally rejected Square Enix’s offer to buy the firm, essentially saying it can still grow without selling.

“In our company’s source of revenue, as a result of a guarantee with our capable workers, a guarantee of steady game development and the preservation of our brand, there is a high possibility of improvement… Thus, our Managing Board declines the offer,” said Tecmo in a statement.

Tecmo has now released a statement saying it is in serious talks to merge with Koei. Again, from Kotaku:

As the game industry environment changes with high-powered hardware, portable game machines and rapid growth as well as online mobile games, the accelerating consumer needs are varied and sophisticated. The industry has intensified. Multi-platform and the importance of overseas markets is pushing the industry towards global competition.

Under these circumstances, these two companies 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.

More through the links.

Square Enix just formally announced its Tecmo bid in an English press release, saying its intentions are “friendly” and consent’s needed for the move from the Tecmno board by September 4.

“We believe that Tecmo will be able to make a great leap forward by joining the Square Enix Group, which will provide the group with further growth opportunities as well,” said the statement.

“We are planning to position Tecmo as a wholly-owned subsidiary of Square Enix Holdings maintaining Tecmo’s current organization and brand as in the cases of Square Enix and Taito.”

Press release after the link. News of the move first emerged this morning.

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Following news this morning that Square Enix is making a serious move to buy Tecmo, the company has released a statement saying it’s offering a 30 percent premium on the target’s stock. From Kotaku:

Square Enix has released a statement explaining his Tecmo takeover plan. It includes offering to purchase a controlling interest in Tecmo by purchasing shares in that company at 30 percent premium (¥960 a share compared to yesterday’s close price of ¥706 a share). The Tecmo Board of Directors has until September 4 to approve or reject this offer. If rejected, Square states, “We will withdraw our offer.”

More through the link.

Update 2: Square’s released a statement saying it’s prepared to pay a 30 percent premium on Tecmo’s stock. Details here.

Update: It’s been announced. IGN’s reporting it as well.

According to this sourceless Kotaku piece, Square Enix is to make an imminent takeover move on beleaguered publisher, Tecmo. From the piece:

Today at 1pm Japan Time, Square Enix will be outlining its plans for a friendly takeover troubled game maker Tecmo. Square Enix’s takeover would help the company gain a stronger foothold in the U.S. market with popular Tecmo titles like the Ninja Gaiden and Dead or Alive games. What’s more, Tecmo’s games will help strengthen Square Enix’s current portfolio, which is heavily dependent on RPGs.

Hopefully more will come out about this later in the day.

According to this Reuters story, EA and Take-Two are now to enter previously-announced private talks about the potential merger of the two firms, and have signed documents to ensure all negotiations are kept out of the public eye.

“As a result, EA does not intend to make any further announcements regarding the status of any discussions or negotiations with Take-Two unless and until discussions between EA and Take-Two have been terminated or such parties have entered into a transaction,” EA said in a regulatory SEC filing.

EA offered to buy Take-Two for $25.74 a share, or about $2 billion, in April. The bid was repeatedly rejected as too low.

More through the link.

Well, that was quick. The Federal Trade Commission is done snooping around EA and Take-Two, and has given the merger its approval.

Now, barring any issues that the FTC feels “public interest” may be against, Take-Two’s belligerence is the only force standing between Take-Two and EA’s mighty jaws.

The two companies are currently in talks, so we’ll see how that goes.

Thanks, MarketWatch.

By Nathan Grayson

EA’s announced that it won’t extend its deadline to buy Take-Two after its current deadline lapses tonight, saying that it doesn’t believe it could integrate the firm in time for Christmas if things drag on any longer.

Take-Two shares fell nearly 6 percent in premarket trade to $23.38 today.

The news comes after weekend talks between EA chief John Riccitiello and Take-Two chairman Strauss Zelnick.

EA has said it will see a three-year plan presentation from Take-Two, but that it’s five-times-renewed tender offer will drop tonight.

So that’s the end of that. For now.

Speaking exclusively to VG247, Massive Entertainment’s senior execs have revealed that they’re already in talks for a potential sale of the World in Conflict developer, following now-confirmed news that Activision is to sell the outfit as a result of its merger with Blizzard.

“It seems like we have plenty of options,” said company president and founder Martin Walfisz, talking at Develop last week. “We’ve had some good meetings here.”

He added: “Being a part of a merger like this is a strange situation, because obviously the new organisation has to look over all of its assets, everything it owns and its strategy for the future. For the past six month’s we’ve been waiting for the merger to go through and to understand whether they see us as a part of their future or not.

“Apparently they didn’t want an RTS studio in Europe, and to be honest we would have loved to have worked with Activision, but we’re pretty confident in our capabilities and there are not many studios that can match our quality.”

The firm is currently working on the console versions of World in Conflict – Soviet Assault for PS3 and 360 – and has expanded expertise outside the PC space as a result.

“We’re working on the console versions [of World in Conflict] together with Swordfish,” said VP David Polfeldt. “In the past year or so we’ve been increasing our console capabilities, going from PC to having a really good understanding of console as well.”

Activision won’t publish the console titles, however, which are now also on the market.

“Activision won’t publish [Soviet Assault], no,” said Walfisz. “That’s part of the whole situation now. In theory they could sell World in Conflict separately from Massive. I think that any buyer would like to make sure it goes together, but we don’t own it. Activision owns it, so that’s their call.”

While options are opening for the developer, the company is now effectively in limbo. Walfisz was confident, though, that Massive will pull through.

“I think that right now everyone is in ‘wait and see’ mode and just want to know what the future holds,” he said.

“But Massive has been in tough situations before in the past 12 years, and we’ve always come out stronger. Most of the guys in the company at least have faith in our ability to find a really interesting future.”

Valve’s Doug Lombardi has said the firm is open to talk about acquisition in an interview with Gamasutra, the first time the shooter developer has mentioned anything of the sort in public.

Valve’s “happy to have that conversation,” he told the site.

“By the same token, the company’s doing pretty well, and we’re really happy with what we’re doing,” he added.

“So we’ll see. I mean, anything is possible.”

Lombardo went on to talk about EA’s involvement with the firm, labouring the point that Valve is as independent as possible and was merely looking for a distribution partner in the publisher.

“We had been socialized to doing so many things ourselves, whether it’s box creation, funding our own development, etcetera,” he said, “that when we came to meet with folks about a distribution deal – and I use that phrase intentionally – we were looking for somebody to do a certain set of services that we didn’t want to do, or weren’t versed in, and nothing more.”

More through the link.

Seeking Alpha’s published a piece saying Microsoft could be interested in buying Take-Two.

“I think that Microsoft is a likely bidder for Take-Two. Microsoft already makes a video game platform (Xbox and Xbox 360) as well as independently publishes video games.”

The unnamed author added: “Microsoft could become a serious player in the video game industry if they made a console and sold the two best selling games on the planet. Making GTA exclusive to the Xbox (just like Halo is) would be a terrible decision, but providing some, incentive, like an earlier release date, could drive additional Xbox sales too.”

Lots more through the link.

EA’s extended its tender offer for Take-Two, after capturing only 15 percent of the company’s shares with its previous deadline.

The offer is now valid until 11:59pm EST on August 18. This is the fourth time EA has extended its deadline in this way.

Take-Two chairman, Strauss Zelnick, responded, “Take-Two’s Board continues to be 100 percent committed to maximizing stockholder value and remains unanimous in continuing to recommend that our stockholders not tender their shares to EA.

“We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA’s inadequate offer. As part of this process, we continue to engage in meaningful discussions with multiple parties, a number of whom have been conducting due diligence. We also remain absolutely focused on executing on our strategic and business objectives.”