Tecmo and Koei Agree to Merger Deal

Could Dynasty Warriors: Dead or Alive be looming around the corner? Probably not, but the remote possibility did actually get bumped up a little bit today, as shareholders in both Koei and Tecmo agreed to move forward with a proposed merger deal. It wasn’t a unanimous decision though, as Tecmo’s second largest shareholder, Effissimo Capital Management, opposed to the merger and stated that it may sell off its 18 percent stake in Tecmo as a result.

Barring any unusual surprises, the deal will have Tecmo investors getting 9/10ths of a share in the merged entity for every stock they currently hold, while stockholders on the Koei end will exchange their shares in a straight up one for one trade.

Oddly enough, the marriage between Tecmo and Koei could actually do a lot for both companies. Koei has had a lot of success with its Dynasty Warriors franchise, while Tecmo’s Ninja Gaiden and Dead or Alive series have always been fan favorites. With the potential for crossover alone, adding Ryu, Kasumi, and Ayane to a new Dynasty Warriors game for example, the combined strength could make a hefty impact on the Japanese game market. Plus, thanks to Tecmo’s success in the Western market, it’s possible that the merger could give Koei a bit of wider appeal to the audience outside of Japan.