Square Enix has officially denied rumors suggesting the company is considering a move to go private. The statement comes in response to a report published in the Japanese business magazine Sentaku, which claimed the company was exploring such an option. Following the report, Square Enix's stock price on the Tokyo Stock Exchange saw an increase of nearly 12 percent.
"No consideration is currently being given within the Company to taking the Company private," Square Enix stated, clarifying that the information from Sentaku was not officially announced by the company. The speculation arises amidst a period of significant consolidation within the gaming industry, with high-profile acquisitions leading to uncertainty about future strategic directions.
Earlier this year, EA was acquired by a Saudi Arabian investment group and subsequently taken private, sparking concerns among fans and employees regarding potential shifts in its game development strategies, particularly concerning its studios like BioWare and franchises such as Dead Space. While the full impact of EA's acquisition will take time to materialize, reports concerning major publishers like Square Enix naturally invite similar speculation.
Square Enix has undergone substantial changes in recent years. Most notably, in 2022, the company divested several of its Western studios, including Crystal Dynamics and Eidos Montreal, to Embracer Group. This sale resulted in Square Enix relinquishing rights to major franchises such as Tomb Raider and Deus Ex. The company has also experienced multiple rounds of layoffs over the past few years.