Square Enix has withdrawn their offer to acquire Tecmo, after the troubled publisher rejected Square’s initial offer and began to cozy up to Koei. Square requested that Tecmo provide documentation detailing the proposed merger between Tecmo and Square, as well as answer a few questions regarding why this move would be the best for both companies. Tecmo has remained silent however, and in light of this Square seems to have decided that withdrawing their offer and letting the issue die quietly would be preferable to a protracted fight.

Square issued the following statement in light of the new developements (capitalization theirs):

"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."

So it looks like we won’t be experiencing a Final Fantasy/DOA mind-meld anytime soon, but maybe this new arrangement will allow Ryu from Ninja Gaiden to be playable in Dynasty Warriors; now that would make me want to get back into the series.