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Sony sells all Square Enix stock

By Matthew Handrahan

Sony sells all Square Enix stock

Thu 17 Apr 2014 6:59am GMT / 2:59am EDT / 11:59pm PDT

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

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

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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Kenneth Bruton Producer

40 8 0.2
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...

Posted:2 years ago


Steve Wetz Reviewer/Assistant Editor, Gamer's Glance

213 530 2.5
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.

Posted:2 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.

Posted:2 years ago


Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,522 3,225 1.3
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.

Posted:2 years ago


Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster

490 219 0.4
@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.

Posted:2 years ago


Christopher Ingram Editor-at-Large, Digitally Downloaded

52 45 0.9
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.

Posted:2 years ago


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