Bandai Namco Holdings
In February 2005, in the wake of their 50th anniversary, Namco announced their intent to merge with Bandai to form Bandai Namco Holdings. The merge was finalized on 25 September, creating the third-largest video game publisher in Japan by revenue. Bandai purchased Namco for US$1.7 billion, with Namco receiving 43 percent of shares and Bandai receiving the other 57 percent. Both companies in a joint statement cited Japan's decreasing birth rates and advancements in technology as the reason for the merge, and to increase their relevance to newer audiences. Both companies worked independently under the newly formed Bandai Namco Holdings until March 31, 2006, when their video game operations were merged to form Namco Bandai Games. Earlier on 26 January, Namco Hometek and Bandai Games merged to form Namco Bandai Games America, the North American division.