Please support Game Informer. Print magazine subscriptions are less than $2 per issue
Sony To Sell Off All 9.5 Million Shares Of Square Enix Stock
Sony’s most recently closed fiscal year (ended March 31, 2014) was a financially trying one for the company. In February, the company warned of a $1.1 billion loss for the period, which was followed by layoffs and closures in the United States and abroad (including the profitable games division).
Today, Sony Computer Entertainment, Inc. has announced it will sell all 9.52 million shares of Square Enix stock it is currently holding. The deal was struck with brokerage firm SMBC Nikko Securities and will see a net cash infusion of approximately ¥4.8 billion ($47.1 million). Based on current trading value, Sony's stake in Square Enix is worth approximately $157.8 million.
The exact transfer price will be published on April 17. Sony will include the capital gains in its earnings projection for 2014, which will be announced on May 14 in conjunction with its full-year 2013 results.
[Source: Sony via Siliconera]
Our Take
There are two sides to this transaction. Sony needs the cash, and this will help buoy the finances a bit. However, it could also be seen as a sign of no-confidence in the Final Fantasy publisher. That company has been struggling due to extremely large budgets that simply can’t be recuperated with sales (as evidenced by labeling strong sellers in 2013 as “underperformers.”)
The good news is that, internally, things might be getting back on track. Final Fantasy XIV has performed well, and Square-Enix has touted the success of Bravely Default in the west (though seemed surprised by sales). Square-Enix must get a handle on what regional audiences want.
I’d like to ask you to support Game Informer’s continued coverage of games with a subscription. For less than two dollars per issue, we mail you a full year of 10 print magazines, each with cover stories and preview features filled with exclusive details about the most exciting upcoming games. We profile and interview game creators. We look back on the rich history of gaming, and we celebrate what’s next.
Here on the website, we offer much of our content for free, including game reviews, daily news, videos, event coverage, and more – all with minimal ads.
We do so with a small editorial team, alongside contributing paid writers from around the world – over 65 individuals from 9 countries around the world, just in the last couple of years.
It’s not possible without support.
In a time when game makers and games coverage have faced hard struggles and layoffs, the future of this 30+ year magazine and community is at risk. Our new standalone magazine subscription is the number one way you can keep us alive – and we believe you’ll get a pretty fantastic gaming magazine in your mailbox every few weeks for your trouble.
Thank you.
