Square Founder Opposes Merger With Enix

According to the January 11 edition of the newspaper, Miyamoto is not opposed to the idea of the merger, just the terms. He believes that the proposed stock-exchange ratio, in which each share of Square stock would be exchanged for 0.81 shares of Enix stock, does not reflect Square's growth potential. And because Miyamoto personally owns 31% of Square's outstanding shares (18.7 million shares), and owns another 9% of the company's shares through companies he controls, his opposition to the deal's terms will directly affect the outcome of the merger. As a result, Square and Enix today proposed a stock-exchange ratio to 1-for-.85 shares -- effectively raising the value of Square by almost 5%. Miyamoto has not commented on the revised exchange rate.