Square Enix denies it’s going private following Japanese reports to the contrary
Square Enix has publicly denied claims that it is planning to go private, after a Japanese business magazine reported the publisher was exploring the move with interest from foreign investment funds. The company behind Final Fantasy, Kingdom Hearts and Dragon Quest issued a statement to correct the record after the report caused its Tokyo Stock Exchange shares to jump between seven and 12 per cent in a single day.
The speculation followed a report by Sentaku magazine, which Square Enix said had not been announced or sanctioned by the company, stressing that "no consideration is currently being given" to taking itself private. Reports suggest major shareholder 3D Investment Partners, which owns roughly 18.5 per cent of the company and has previously pushed for a strategic rethink, may have fuelled the rumours. The episode comes after several years of restructuring at Square Enix, including the 2022 sale of Western studios Crystal Dynamics, Eidos Montreal and Square Enix Montreal to Embracer Group, and layoffs of over 100 US and UK staff earlier this year as it consolidated development in Japan.
- Square Enix denies reports it is considering going private
- Sentaku magazine report sent shares up 7-12% in a day
- Follows years of layoffs and Western studio sales at the firm
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Square Enix is a major Japanese video game company best known for long-running franchises such as Final Fantasy, Dragon Quest and Kingdom Hearts. Like many publicly traded firms, its shares are bought and sold on the Tokyo Stock Exchange, meaning outside investors can own stakes in the company and, in some cases, push for changes to how it is run. "Going private" would mean the company buying back its shares from public markets so it is no longer listed or answerable to outside shareholders in the same way.
The idea gained attention after a Japanese business magazine reported that Square Enix was considering exactly this, with backing from foreign investment funds. One shareholder often mentioned in this context is 3D Investment Partners, an investment firm that owns a significant stake in Square Enix and has previously called on the company to reconsider its strategy and use of resources.
This matters because Square Enix has spent recent years restructuring, including selling off some of its Western studios and cutting jobs, as it focuses more on its Japanese operations. Speculation about a change in ownership structure can affect its share price and raises questions about the company's future direction, even when, as in this case, the company itself denies the reports.