Early today Square Enix has revealed that they have sent a proposal to Tecmo to buy Tecmo stock at a 30% higher price as of the price of August 28th. The price was 706 yen ($6.45) and they are willing to buy at 920 yen ($9.20) per share.

According to Square Enix the reason for the buyout was laid out here...

1.  The reason to submit the Proposal

      Video games have been globally recognized as a major entertainment
      genre, and have now become an industry receiving considerable
      attention in terms of its market size and growth potential.  In the
      meantime, the game industry in Japan is standing at a critical
      juncture whether it continues to be a center of the video game
      industry in the world, or not.
      TECMO is a group of excellent creators with proven track-record in the
      global market, which is a precious human resource of Japan.  We,
      however, cannot be optimistic about the future of this significant
      resource, given the current circumstances surrounding TECMO.
      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.
      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.

  2.  Major Points of the Proposal
      a)  TOB Price: 920 yen per share
          Adding a premium of 30%+ to TECMO’s closing stock price as of
          August 28, 2008 (706 yen).

      b)  Number of the TECMO Shares to acquire
          Lower Limit: More than half of the outstanding TECMO Shares upon
          fully-diluted basis (including residual shares subject to stock
          options).
          Upper Limit:  None.

      c)  Deadline to reply the Proposal: September 4 (Thursday)
          If the Company should, by the deadline, receive no response from
          TECMO, or fail to obtain consent by the board of directors of
          TECMO to the TOB, the Company will withdraw the Proposal, and will
          NOT acquire the TECMO Shares through the TOB as planned in the
          Proposal.

At this point Tecmo has not responded though they have till September 4th to do so. We have sought response from Square Enix and Tecmo for further comment but as of this writing we have not gotten a response from either party. We will be covering this as it progresses