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Sony sells all Square Enix stock

UPDATE: The stock sale was worth almost $150 million, Sony will record a gain of $48 million in its fiscal report

Update: Sony has announced that the value of the total sale was 15.3 billion ($150 million). The company will receive net cash proceeds on April 21, 2014.

Original Story: Sony Computer Entertainment Inc. has sold all of its stock in Square Enix Holdings, amounting to 9.52 million shares.

The sale, which was made to SMBC Nikko Securities Inc., will result in a gain of around 4.8 billion ($47 million), which Sony will record as "other income" in its consolidated financial results for the first quarter of the current fiscal year (ending March 31, 2015).

Sony offered no reason for the sale, though it will disclose the official price in an announcement tomorrow.

Square Enix has experienced a difficult few years, but its last two quarterly reports have showed a return to profitability. Indeed, its share price has improved over the last 12 months, though it has fallen to 1685 after hitting a five-year high of 2895 in January.

Sony, meanwhile, is in the midst of a broad strategy to reduce costs, which has included the closure of retail stores, the sale of valuable office space and thousands of redundancies.

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Latest comments (6)

Kenneth Bruton Producer 2 years ago
It would not surprise me if Sony also has a stake in Microsoft and Nintendo (in a minority, of course...) Mr. Yoshida bought 2 Wii U systems...seems logical enough, I suppose...
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Steve Wetz Reviewer/Assistant Editor, Gamer's Glance2 years ago
Considering that at one point Sony was a majority owner of Square Enix, this is very telling of Sony's confidence in Square's continued financial profitablility. Considering they probably know something we don't, I expect to see a story about job cuts at Square forthcoming.
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Karna V Krishnan Producer, Reliance Games2 years ago
Already started. Square Enix's India Studio was shut down a few days ago. There is talk of redundancies in their Latin American studios as well.
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.2 years ago
Christian, I'm wondering if that's just a mistranslation and Sony are stating they are making a gain of 4.8 billion yen from the price they originally purchased the stock at.
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Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster2 years ago
@Christian, because the net lump sum isn't paid all at once. Companies sell often on very short term interest free credit. This is so SMBC Nikko's CEO doesn't mess up it's expenditures books for the coming quarter as harshly. Recording 3 times that they spent 50mil in acquiring companies looks better than one 150mil drop in profits any investors cringing over their reduced dividends in a single month.
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Christopher Ingram Editor-at-Large, Digitally Downloaded2 years ago
I think that regardless of the finite price value of the sale, this transaction doesn't look to bode well for Square Enix; though, it does show that Sony is still showing signs that it is serious about patching the company up and minimizing its losses.
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