Square Enix it appears to be trying to sell shares in its various studios, and there may be potential buyers among them Sony, Tencent And Nexon.
During the conference call on the fiscal year results, Square Enix revealed that it is looking to sell shares in its studios to potential buyers in order to improve capital efficiency.
As we know, Square Enix recently sold its Western studios to Embracer Group: this was a first phase for the company. The second phase, as reported, would be the diversification of the firm’s capital structure. What does it mean? Due to rising development costs, Square Enix will be more selective with resources; therefore the company will carry out a sort of review for the studies in order to limit expenses. Studios in the US and Europe will be affected by this decision, so that the company can allocate additional resources to the games developed by its Japanese studios.
7) Phase 2 = So SE is looking to sell stakes in its studios to others to improve capital efficiency. Right when others like Sony etc are buyers. I would expect Sony, Tencent, Nexon etc would be interested.
– David Gibson (@gibbogame) August 5, 2022
Square Enix announced that development costs are currently $ 840 million. However, after the sale of Crystal Dynamics and Eidos, the company expects to have $ 1.4 billion in cash and no debt, which should be enough to finance other gaming investments.
Source: Twisted Voxel
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