Official denial from the Japanese publisher
Japanese publisher and developer Square Enix, known for iconic franchises such as Final Fantasy, Kingdom Hearts, and Dragon Quest, has released an official statement denying rumors about the company potentially going private.
The statement came in response to an article in the Japanese business magazine Sentaku. The report claimed that the publisher was exploring options to delist with the backing of foreign investment funds. This report immediately caused Square Enix's share price on the Tokyo Stock Exchange to jump by 7–12%.
“In the September issue of the monthly magazine Sentaku, an article was published regarding the possibility of Square Enix Holdings Co., LTD. going private. However, this information was not announced by the company,” Square Enix representatives emphasized. “Currently, the company is not considering going private.”
Background of the speculation
According to Investing.com, the catalyst for the rumors may have been one of the major shareholders—the 3D Investment Partners fund, which owns about 18.5% of Square Enix shares. The investment firm had previously criticized management's current plan and called on the board of directors to review the long-term strategy.
In recent years, Square Enix has been actively reorganizing its studios and development structures:
- In 2022, Western studios (Crystal Dynamics, Eidos Montreal) were sold to the Embracer Group holding;
- Headcount was streamlined and reduced in the US and UK divisions;
- The company consolidated core development and publishing efforts directly in Japan.
Square Enix remains a public company and continues to focus on developing key games for leading platforms.
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