Square-Enix for Sale? Sony/MS Bidding War?

[R3P0]

This is a big one for the PS5 world and may also explain why we are not seeing FFVII remake on the Series X yet.

SE of course is denying the report from Bloomberg who is not going to make this story up without confirming from multiple sources a report like this.

Original Bloomberg Japan Report

1日を始める前に押さえておきたい世界のニュースを毎朝お届け。ブルームバーグのニュースレターへの登録は こちら。

スクウェア・エニックスに対し、複数の買い手候補が関心を示していると、ＣＴＦＮが事情に詳しい銀行関係者 ２人を引用して伝えた。

　　関心の対象がゲーム部門だけなのか、会社全体なのかは明らかになっていない。

　　ブルームバーグのデータによると、スクウェア・エニックスのデジタルエンタテインメント事業は、202 0年３月末に終了した会計年度で売上高全体の72％を占めた。

　　ブルームバーグ・インテリジェンスは11日、「世界のモバイルゲームの成長は減速が続く可能性がある」 と指摘。新型コロナ禍による外出規制などを背景に売り上げが急増した2020年に比べると非常に厳しくなっ ているとした。

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Several potential buyers have shown interest in Square Enix, CTFN quoted two bankers familiar with the matter.

It is not clear whether the target of interest is only the game department or the entire company.

According to Bloomberg data, Square Enix's digital entertainment business accounted for 72% of total sales in the fiscal year ended at the end of March 2020.

Bloomberg Intelligence pointed out on the 11th that "the growth of mobile games in the world may continue to slow down." It is said that it will be much stricter than in 2020, when sales surged due to restrictions on going out due to the new corona virus.

See below SE Denial.

“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."

[Diesel]

Really wouldn’t surprise me for Sony to try and acquire Square as an answer to the Bethesda acquisition by MS. Could be a hand forcing by MS having interest to improve their Japanese market share similar to Nintendo buying the makers of Luigi’s Mansion because the developer wanted to sell and Nintendo didn’t want to lose them.

[ZHobbs]

I think if SE was looking to sell they'd be a bit too rich for Sony's blood but you never know. It would definitely help Sony dive back into the mobile gaming market.

[Hayabusa85]

If Sony and Microsoft ever went after the same publisher it wouldn't be a bidding war since Sony can't compete with Microsoft tossing money around. The only thing in a case like this that might have helped Sony before was if a Japanese publisher would take less money to stick with a Japanese company but at this point Sony have turned more American than Microsoft somehow so who knows. Either way others having interest in SE doesn't mean they are selling and they could also just be putting out feelers like what happened with Warner that lead to nothing.

[Steelmaker]

Originally Posted by Hayabusa85

If Sony and Microsoft ever went after the same publisher it wouldn't be a bidding war since Sony can't compete with Microsoft tossing money around. The only thing in a case like this that might have helped Sony before was if a Japanese publisher would take less money to stick with a Japanese company but at this point Sony have turned more American than Microsoft somehow so who knows. Either way others having interest in SE doesn't mean they are selling and they could also just be putting out feelers like what happened with Warner that lead to nothing.

If money was the only factor in these acquisitions, Insomniac would be under MS' umbrella right now. You honestly think MS didn't try to go after them at some point? Sony got Insomniac and paid WAY under market value for them!

Having said that, didn't Square-Enix already debunk this and have no plans to be acquired by anyone?

[Hayabusa85]

Originally Posted by Steelmaker

If money was the only factor in these acquisitions, Insomniac would be under MS' umbrella right now. You honestly think MS didn't try to go after them at some point? Sony got Insomniac and paid WAY under market value for them!

Having said that, didn't Square-Enix already debunk this and have no plans to be acquired by anyone?

1) I was specifically referring to R3P0 putting, "Sony/MS Bidding War?" in the title. A bidding war would be back and forth bidding until a highest bid wins so like I said Sony can't compete with Microsoft if that happens with something on this scale. A Tencent and Microsoft bidding war would be the more likely outcome in this hypothetical acquisition.

2) I acknowledged there can be other factors than just highest bidder when I said there could be a factor like Square wanting to go to a Japanese company much like Insomniac went with a company they had worked closely with anyway.

3) But the Insomniac comparison doesn't work either since there is a big difference between a game studio under $300 million and one of the biggest publishers ever that would be over $10 billion. On top of the difference between the fact that Insomniac were already basically a Sony studio while short of Sony paying for a few timed exclusive deals they are not associated with Square in any way. Honestly if Square were to hit the market I'm not sure Sony can even put in an opening bid let alone a bidding war Sony's realistic targets are much smaller like just game studios or at most a publisher like Konami if they were to split their video games division from the company and sell it off since they are not going to sell off their Pachinko money machine.

4) Companies always deny stuff like this so it doesn't debunk it but it is always nothing but a rumor until/if something happens anyway so there is no harm speculating. After Avengers I could also see it being that Square as a whole are not on the market but they could be looking to sell off Eidos/Crystal Dynamics.

[Zivouhr]

Didn't Square Enix say it was all false information and they have no intention of selling to anyone? Of course if they're publicly traded, then they're at the mercy of the shareholders and all.

[InuYashaCrusade]

Originally Posted by Zivouhr

Didn't Square Enix say it was all false information and they have no intention of selling to anyone? Of course if they're publicly traded, then they're at the mercy of the shareholders and all.

Yeah they debunked this rumor shortly after it started.