According to a fresh report, Square Enix is considering selling its shares in its studios just after the release of its most recent financial results.
According to MST financial analyst David Gibson, the studio is reportedly looking to sell shares in its studios in order to improve capital efficiency. He also mentioned some of the companies that might be interested in doing so, including Sony, Tencent, and Nexon.
Gibson pointed out that Square Enix might be getting $1.4 billion from the recent sale to Embrace Group. This led him to declare the company's decision to sell the shares to be extraordinary, because Square Enix should have raised enough money to cover all of its expenses.
Gibson said that Square Enix's capitalized game development expenses are currently $840 million. However, after the sale of the Crystal Dynamics/Eidos, the company will have $1.4 billion in cash and no debt, which is enough to cover expansion of its game investment and not sell down stakes in its studios.
Square Enix's most recent financial results showed it made $561.7 million in overall net sales last quarter of 2022. This is down by 16 percent compared to the company's earnings last year in the same period listed at $665.4 million. A decrease in operating income was also recorded, which was down from $129.9 million last year to $108 million this year in the same quarter.