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.

Tecmo: Itagaki Gag Order True, Not in Effect

There were a lot a sensationalistic stories today about Tecmo playing hardball with former employee and Dead or Alive creator Tomonobu Itagaki. According to several stories, Tecmo filed a gag order on the now disgruntled employee, which would keep him from speaking to the media about aspects of the lawsuit he has filed against the company. According to those same reports, this would include talking about confidential insider information, talking about the business inside Tecmo in general, and making inflammatory remarks that have the potential to harm the company’s business.

A follow-up with Tecmo’s Kyoko Yamashita offered some further coloring on the story - including the fact that this gag order is not in effect yet:

“There are numerous sites reporting on each new action/movement regarding the two separate cases and as you can imagine, not everyone is 100% accurate. As for the gag order, from what we have been told (and read in Japanese), the order was filed but has not been issued yet. Hence, the order is not in effect ? yet. “

Tecmo also pointed out that - because this is about a pending lawsuit - chances are they will not be commenting on it any further in the future. No shock there.