August 10, 2022

Wire Service Canada

Complete Canadian News World

Does Square Enix want to sell shares of its studios, Sony and Tencent among potential buyers? – Multiplayer.it

Square Enix He intends to sell some study classes And according to market analyst David Gibson, there are potential buyers Sony, Tencent, and Nixon.

During its financial report to shareholders on its fourth-quarter results, the Japanese company said it plans to sell shares of its studios as part of its “Phase Two” plan to increase capital efficiency.

there “level 1” Expect the sale of Crystal Dynamics and Eidos Montreal, both bought by Embracer Group in May. Square Enix says the decision to withdraw ownership of the western studios came over concerns that their games would disrupt sales of the rest of the company.

there “Phase 2” Instead, it consists of diversifying the company’s capital structure. Due to higher development costs, Square Enix will be more selective in its resources, which limits the company’s expansion. Therefore, the company conducts a review of its internal study portfolio in order to assess these factors. In particular, this decision will be affected by the decision that is located in Europe and the United States owned by the company, with the goal of allocating additional resources to games developed by its Japanese teams.

Thus, Square Enix wants to sell shares of its studios to improve capital efficiency and according to Gibson among the potential buyers are Sony, Nexon and Tencent, as in recent months they have on more than one occasion demonstrated a desire to expand or. to diversify their investments.

After selling Crystal Dynamics and Eidos, the company expects to have $1.4 billion in cash and zero debt, a favorable condition Gibson says will allow Square Enix to fund new investments while not selling its stock. education.

READ  Update 0.91 available, full patch notes for November 5th update - Nerd4.life

In the meantime, it appears that Tencent is about to buy more shares of Ubisoft, with the goal of becoming the largest shareholder.