
Update: In response to Bloomberg's report, Square Enix has issued a statement to confirm that it "does not consider selling off the company or any part of its businesses," and has not received an offer from any third party.
"Bloomberg has reported today that there is interest from several buyers to acquire Square Enix. However, this report is not based on any announcement by SQUARE ENIX HOLDINGS CO., LTD.
We do not consider selling off the company or any part of its businesses, nor have we received any offer from any third party to acquire the company or any part of its businesses."
Original story: A new report via Bloomberg Japan says "several" parties have shown interest in buying the Japanese game company Square Enix.
This information comes from two bankers "familiar with the matter", who were quoted by the finance news platform CTFN. It's not clear if this purchase would be Square Enix's gaming sector or the company as a whole.
Some of its most recently published games include Outriders, Balan Wonderworld and Marvel's Avengers.
If this is true, there's a chance that one of the interested parties could be Microsoft, as Xbox head Phil Spencer has mentioned time and time again how the company wants to improve its relations with the Japanese market.
In saying this, a number of industry analysts have noted how this may not necessarily mean anything is happening.
Who do you think these potential buyers might be? Think we'll see Square Enix snapped up anytime soon? Tell us below.
[source bloomberg.co.jp, via twitter.com]
Comments 38
Please no Tencent ._.
Unpopular opinion
I might be in the minority, especially on this site but I don't want Microsoft buying all the third parties to pass them off as first party when they could just be using studios they already own or cultivated by themselves
I don't want this gen to become a competition to see who can buy out the most high profile publishers and lock their games to their platforms, and I speak as someone who invests in all 3 of the big guys' products
Some publishers shouldn't need to be bought to ensure they have a future with a console manufacturer. Microsoft should probably also start to invest more in what they already have instead of just going "your franchise? Grabs publisher by the throat MY franchise."
I wouldn't be at all surprised if it's Sony especially to counter MS buying Bethesda. It would make sense too since both compose are Japanese and then Sony can use it as I said to counter MS. Want to play Final Fantasy and Dragon Quest games then come to Sony. Want to play Elder Scrolls go to Microsoft.
@Tasuki That sounds like that could be something they're thinking about especially after they lost Bethesda's games, but I wonder if they have the pockets for it
They've done stuff like moneyhatting Square games but buying the whole company seems like a way bigger ask
@Tasuki that would be bad considering they shut down most of Japan studio. Pretty guarantees Square-Enix would only be working on games like KH, Nier, FF, and DQ. Games like Bravely Default, TWEWY, and Octopath traveler would be dead.
Copying my comment from NL: As an Xbox fan i’m happy with their recent acquisitions but the one company I don’t want anyone to touch is Square Enix. Xbox definitely needs some more SE love, but I don’t want their games to stop coming to Nintendo consoles. I’m hoping Gamepass will change the attitude of Japanese developers towards Xbox for the better.
Sony just annoys me since they pay for timed exclusivity on almost all of SE’s games; but they do have a legacy with them as well so the games should be shared with everyone
At least if it’s Microsoft there is a good chance the games will still be on Nintendo. If it’s Sony then rip.
@K1LLEGAL Honestly Microsoft acquiring Square would probably change nothing about where Nintendo stands in this
They'll probably continue to get the legacy games but they're basically done receiving basically ANYTHING new from Square in either scenario, even when it comes to smaller titles like Octopath, Bravely or the dozens of Final Fantasy spinoffs like Tactics, Thearhythm and World of FF, and they're already missing out on the huge AAA stuff from them like any Final Fantasy after XIII, most of the Kingdom Hearts stuff as of late and their bigger internal titles like the Luminous Productions stuff or anything from Crystal Dynamics
Highly doubt SquareEnix is actually for sale, but if it is, you can bet Microsoft will outbid anyone. They already also shown they dont care if they have to fulfill contractual obligations delivering games to PlayStation.
@TheFrenchiestFry Very true sir. Last thing we need is something getting closer to a full blown monopoly.
May your fries stay frenchy.
@TheFrenchiestFry Square Enix currently has a market cap of 6.879B. Also keep in mind, if multiple parties are interested there will likely be a bidding war and the price might go higher.
If the numbers I am looking at are correct, Sony has 44.6 billion cash on hand.
Microsoft has 132 billion.
It might sound like Sony could afford it, but keep in mind Sony parent company might not be as willing to do the investment, especially since they might feel they need to make the money back, and wont see a path to do so.
Really not sure if Sony, with it's current philosophy, would be a good owner (for us gamers.) You can bet they would kill dev efforts on anything that is not a big IP. No more Octopath Traveler level projects, not with Jim Ryan is in charge.
Electric Arts has about 6.7billion on hand, so they are not likely able to even sit at the table. They could offer a stock deal, but giving the issue is doubt in the performance of gaming stocks, I doubt the sellers are likely to consider stock deals. Take Two is even less likely, with just under 4 billion on hand.
Tencent has 37 billion cash on hand, and they dont like having money on hand, they constantly seek investment opportunities, but they also seem to be more interesting on owning a slice of every pie, no whole pies. Possible to be on the talks, but doubt it.
I would fear Amazon, they have the money (84b), but they have proven to be terrible gaming hosts.
We know Google is not interested in throwing a lot of money at gaming so wont even Bing up if they have the money.
Facebook been trying to crack into gaming, with Occulus among other efforts. And they have the money (62b) but I would hate seeing this go to them.
I dont know who is interested, but feel this goes down to Microsoft, Amazon, Facebook or Tencent.
Edit:
Figured i forgot to mention Nintendo. They have 11billion on hand, and hey love having that comfy cushion for rainy days. Doubt they will be throwing most of it at a SquareEnix acquisition.
@Tharsman Is it bad that I feel Tencent or Facebook could potentially be one of the better outcomes from this
@TheFrenchiestFry Facebook would likely want to force all future Square Enix titles into Occulus, locked behind Facebook logins.
@Tharsman I mean Zuckerberg is pretty much the Kefka of the online world in that he makes everyone feel miserable so obviously he's a great fit
@Tharsman I don't know if I would be totally surprised to see Google come in and buy it up. They did invest a lot I'm sure into Stadia, and did take a shot at developing in house, which I'm sure was a big investment as well. Failing that, they could just try and buy some studios.
Beyond that, I really like your response in that it's not just a Xbox or Sony thing. The gaming verse is just getting larger with more groups trying to get a piece of the pie. Interesting times.
EDIT: IMO, I don't feel the need for Microsoft to buy them, unless they can get them on the cheap. I would like to see MS now focus on actually pumping out some first party games with the already large amount of studios they have.
@Tharsman don't forget alot of companies in most sectors take loans for acquisitions, but Ido agree with what you are saying.
Even if square does sell I am unsure who would take them as a whole. People forget they have a manga line, and a pretty big merchandiseine of action figures and other stuff.
Not including a bulk of revenue comes from mobile gaming
@TheFrenchiestFry Honestly, I know where you coming from, MS suddenly having too much legacy gaming locked down under their flag, but at least some things are big pros for MS to be the one getting them:
GamePass has changed how Microsoft measures success. A game does not have to sell like crazy for MS to justify keeping them and allowing them to keep making whatever they want.
Microsoft has done their best to put their games day one on both, consoles and PCs, and now xbox cloud streaming opens the door for even a phone or chromebook [eventually] to play their games.
Plus MS honors their deals.
@Tharsman And I respect everything Microsoft has done to make Xbox viable including how they've approached branching to other connected devices
I still think something like this, especially if Microsoft makes another Bethesda level acquisition genuinely terrifies of me of where the game industry is going after this. It's why I also really hope SEGA isn't on their list either
If they keep buying at this rate, Xbox will basically become the new Nintendo in that you literally have no other option, there will be no competition, and then they start to get complacent with success and don't try as hard, especially with what they already got
@TheFrenchiestFry while I don’t disagree with this sentiment; I will say that if I had to pick between options I’d rather it be MS but I don’t want it to be anyone. Not Square.
@SegataSanshiro I mean Sony were in that spot with PS3, came the hell back with PS4 and now they're kind of resting on their laurels again despite the fact PS5 is still doing pretty well
I don't expect Microsoft to suffer another XB1-level blunder in the future at all but there is the possibility stuff just circles back to them getting too comfortable with success, because it's happened before, even with Nintendo
The only franchise SE owns I'm interested in is Deus Ex and it's on a hiatus. Just don't let Facebook, Tencent, Amazon or Google get them. They don't care about games or gamers. Just their money.
Sony had a huge presence in Capcom's show.
Felt out of place. Idk what's going on.
Maybe Phil bought Kojima, Sony bought Capcom and Square is just selling their anime division to sony or something like that.
I could see Apple and Epic Games getting in the mix also.
To be honest. I hope MS get them. Looks like the only way to guarantee Xbox receives every Square-Enix games, otherwise they partner with Nintendo or sony, or even relase a game on both PS4 and Switch leaving Xbox out. So for me, I would be really happy if MS acquires them.
I don't believe for a single second that Square Enix is going to be bought. By anyone.
Phil said they wanted "in" on Japan, Square Enix would certainly do that.
I'm kinda hoping SE gets broken up, I'd prefer to see stuff like outriders/Tomb Raider be xbox exclusive than all of SE going exclusive (to anyone)
Hopefully no-one buys them.
I already said this back in September when it was announced but Microsoft buying Bethesda set a very dangerous precedent going forward. I'm pretty sure if Square Enix is bought by anyone, it'll be Sony as a direct response to the Bethesda purchase.
Yep buy them up and get them on Gamepass 👍
I really don’t care if Sony or MS buys them, but if I had to pick one or the other, it’s gotta be Xbox, because, you know, Game Pass.
I hope Microsoft will buy them. I am tired of the fact that many games from Square Enix do not come out or come out with long delays on the Xbox.
I'm used to SE games being multiplatform so anyone buying them up and make their games exclusives doesn't feel right for me. But damn Sony for FF timed exclusivity and SE themselves for some of their new games and remasters not appearing in Xbox day one or at all (not so bad though since i can get them on PC). Phil somehow needs to fix that. Maybe injecting ***** load amount of money to SE as investment will do the job.
Sony would buy them for cheap but it's obvious that they would be outbid quickly. It would be good for Microsoft and Game Pass with all the legacy games included. It would also benefit the Xbox market because Sony's moneyhatting is affecting the arrival of Final Fantasy VII Remake and Final Fantasy XVI. Finally, it would increase Game Pass and Xbox's popularity in Japan (if that matters).
I can see a pattern.
Sony made long exclusive deals with Bethesda Studios, MS bought Bethesda.
Sony made long exclusive deals with Square Enix, MS buy Square Enix.
;-P
XBOX Please Buy Japanese game company Square Enix, We Trust You Phil Spancer
💚❤💚❤💚❤💚❤💚❤💚
@Tasuki I don't think Sony has the money to buy Square Enix.
All this buying out of major third party developers feels like a very bad way for the industry to go. I understand people want MS (on this site obviously) to buy everyone so they can say 'ha-ha' to people who own a Sony/Nintendo machine, however I've always had the opinion that taking franchises away from people is a bad situation compared to building your own ones.
I guess it's like if Sony bought the Halo franchise so Xbox owners couldn't play it anymore. In my opinion that isn't great for the gaming industry compared to a new franchise being started by MS that non Xbox owners can chose whether they want in or not.
Bit like me paying for Disney+ subscription and suddenly WB buy Marvel so I can't watch them unless I also buy the WB channel. I just don't see anything good coming from that.
And I haven't even started on what consolidating companies under one roof does to creativity which is normally never a good thing.
Just seen the update on NintendoLife. Glad it’s not happening. That being said... Xbox need to get games the same date as PS and Nintendo. I mean here we go again with Saga Frontier and Legend of Mana. Where is the Xbox version?
Glad it's not happening and seems like a bit of a baseless rumour based on "two bankers". LOL
I'm sure it got fanboys all hot under the collar for a while though!
@StonyKL
This is more a thing for timed exclusive stuff,
because thats the only 'benefit' you have as a fan.
When MS buys a Publisher fans are happy because they get more games in GamePass.
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