Square Enix plans to sell shares in its studios to “increase capital efficiency”

Crystal Dynamics and Eidos Montreal were sold to prevent their sales from hurting the rest of the group.

It left us big surprises in the form of 2022. changes and acquisitions Square Enix, Crystal Dynamics, Eidos Montreal and Square Enix joined the party by selling Montreal to the Embracer Group. The Swedish conglomerate already plans to capitalize on some of these developers’ most iconic legends, but everything points to the authors of most Final Fantasy deliveries. will keep creating chat.

CD/E sales were driven by concerns that the books would destroy sales for the rest of the group.David GibsonAnd as they commented at the conference after delivering the results of the last quarter, Square Enix would pursue a two-phase strategy: “Sale of Crystal Dynamics/Eidos (CD/E), headlines are a concern. cannibalize the sales of the rest of the group and therefore can increase capital efficiency,” says analyst David Gibson. diversification of the capital structure from the studio.”

“Increased development costs of making games are 100% combined with in-house studios. selective and concentrated sourceslimiting expansion,” Gibson continues, adding that Square Enix is ​​also reviewing its developer portfolios.

“Some studios will remain 100%, others will change (equity method or joint venture) [inversión conjunta a largo plazo]), they will also do research to expand the studio’s portfolio,” continues the analyst.

SE wants to sell its stake in its studios to improve capital efficiencyWhich brings us to the most important decision of the whole project: “Therefore, SE, sell stock in their studio increase capital efficiency. Only others Sony etc. They’re buyers,” says Gibson, with a theory of his own, “Sony, Tencent, Nexon, etc. i would wait. They’re interested.”

Also, the analyst recalls, “SE’s capitalized game development costs are currently $840 million (content production account). However, after the sale of CD/E, the company 1.4 billion cash and zero debt… That’s not enough to finance the expansion of gaming investments and sell stakes in their studios.”

In this way, everything indicates that Square Enix will continue to star in various news in the coming months. Rumors of the sale of Western studios attracting sony’s gaze, who is interested in buying a company. But we’ll have to pay attention to the situation to finish understanding Square Enix’s future plans.

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More information: Acquisition of Square Enix and Studios.