After careful consideration from management, Tecmo has decided against the Square Enix takeover and decided instead to group with the more Eastern driven Koei.
Tecmo, in a surprise move, has rejected the friendly takeover bid from Square Enix this morning. As reported earlier, Square Enix extended the offer to Tecmo last week and gave the company until today in order to reach a decision. Tecmo "collected opinions from management and game creators as well as a wide range of employees" to arrive at their decision.
Following the rejection of the offer, Tecmo announced a more preferable partner they planned on joining: Koei. Given the strengths of Tecmo in the Western market, Koei would bring the company full circle with a stronger presence in the Eastern market. Koei is best known for their Dynasty Warriors hack-and-slash series which retains a high level of popularity in the Japanese and Asian market as a whole.
According to Tecmo, both companies are on board for the merger and things should be moving forward in the coming days.