Sony's $124million stake in SE sold $47million (updated)

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#1 Edited by sts106mat (24167 posts) -

http://www.gamespot.com/articles/ps4-company-sony-to-sell-its-entire-stake-in-square-enix-valued-at-around-47-million/1100-6419024/

PlayStation 4 company Sony will sell its entire stake in Final Fantasy developer Square Enix, Sony announced today in a Japanese news release. Translated by The Wall Street Journal, the announcement states that Sony will unload its entire position, 9.52 million shares, in a transaction worth around ¥4.8 billion yen ($47 million).

Major Japanese brokerage firm SMBC Nikko Securities Inc. will oversee the transfer. The deal is expected to be officially closed on April 17. It is the latest example of Sony attempting to become more efficient and boost profitability.

In the past year, Sony has announced that it will sell two major office buildings, lay off thousands of employees, and even sell its PC division as a means to return to profitability.

You might be surprised to learn that Sony held a stake in Square Enix, but in fact the PlayStation company's investment in the Final Fantasy studio dates back to the early 2000s.The Wall Street Journal points out that Sony actually held 8.2 percent of Square Enix's total shares.

Sony originally invested $124million in the japanese software maker

http://uk.ign.com/articles/2001/10/08/sony-buys-stake-in-square-2

EDIT - 17/4/14

Sony have released a press statement to say that they expect to be able to report a GAIN (as other income) of 4.8 billion yen from quarter 1 of the year ending March 2015.

here is the link to the official press release thanks to @Animal-Mother

http://www.sony.net/SonyInfo/IR/news/20140416_E.pdf

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#2 Posted by FreedomFreeLife (3948 posts) -

If Square Enix fails to earn money then Sony wins most with this sell.

If however Square Enix makes FF games and sell a lot, earns massive profit then Sony loses with this sell. So, Sony bet that SE goes bankrupt

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#3 Posted by kuu2 (10250 posts) -

Nothing to see here Sony is fine and as profitable as ever.

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#4 Edited by lglz1337 (4942 posts) -

and this is bad why exactly ?

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#5 Posted by ShepardCommandr (4825 posts) -

Maybe sony is losing their faith in square.....

The quality of their games has gotten progressively worse and worse and even managed to hit rock bottom with LR.

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#7 Posted by sts106mat (24167 posts) -

@lglz1337 said:

and this is bad why exactly ?

bad ? who said that ?

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#8 Edited by Stevo_the_gamer (44839 posts) -

Sony was invested with Square? Eek. Smart move to bail out there.

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#9 Posted by lglz1337 (4942 posts) -

@sts106mat: just asking

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#10 Posted by ghostwarrior786 (5811 posts) -

how is this bad news exactly? square is garbage not and sony got $47m to invest in stuff maybe even a new ip. great news

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#11 Posted by regnaston (349 posts) -

(tinfoil hat on) Wait so Sony owned a share in Square Enix... that explains the graphical differences between XB1 and PS4 versions of their games..SABOTAGE (tinfoil hat off)

;)

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#12 Posted by Nightflash28 (2334 posts) -

Selling another company's shares is not what downsizing means...

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#13 Posted by sts106mat (24167 posts) -
@Nightflash28 said:

Selling another company's shares is not what downsizing means...

they are downsizing their investment in square enix to zero.

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#14 Edited by misterpmedia (6209 posts) -

Goes to article, ctrl+F "downsizing/downsizes", no results, looks at lemmy thread title, laughs at TC for the reach and lack of understanding of the situation.

-square enix multiplatform now

-shares were nonvote

-no point in having them

-final fantasy games and the such like will sell more on PS platforms anyway

@Stevo_the_gamer said:

Sony was invested with Square? Eek. Smart move to bail out there.

And /thread.

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#16 Edited by GrenadeLauncher (6843 posts) -

Wow, selling 8% of shares in a company that's floundering. How awful.

sts106mat topics becoming as bad as FreedomFromFacts.

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#17 Posted by ghostwarrior786 (5811 posts) -

@sts106mat said:
@Nightflash28 said:

Selling another company's shares is not what downsizing means...

they are downsizing their investment in square enix to zero.

'Reducing the size of a company by eliminating workers and/or divisions within the company' - definition of downsizing

u are wrong

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#18 Posted by musicalmac (24890 posts) -

I think this is fascinating news, and anyone who doesn't think it's at the very least "newsworthy" has a very short (or very young) memory. It wasn't too long ago that FFXIII on 360 was a BOMBSHELLannouncement.

This is more of a shake-up than people understand. The situation at Sony may be more dire than we have been led to believe. That, or new management has decided to take the company in a new direction.

Really compelling information.

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#19 Edited by shawn30 (4390 posts) -

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

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#20 Posted by Animal-Mother (27350 posts) -

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

It's understandable because square enix isn't in the most profitable or super lucrative of positions.

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#21 Edited by ConanTheStoner (17145 posts) -

Sounds like a good thing.

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#22 Edited by sts106mat (24167 posts) -

@ghostwarrior786 said:

@sts106mat said:
@Nightflash28 said:

Selling another company's shares is not what downsizing means...

they are downsizing their investment in square enix to zero.

'Reducing the size of a company by eliminating workers and/or divisions within the company' - definition of downsizing

u are wrong

would you rather i changed the topic title?

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#23 Posted by misterpmedia (6209 posts) -

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

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#24 Posted by deactivated-583e460ca986b (7240 posts) -

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

"In the past year, Sony has announced that it will sell two major office buildings, lay off thousands of employees, and even sell its PC division as a means to return to profitability."

Have you actually read any Sony financial news in the past few years?


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#25 Posted by ConanTheStoner (17145 posts) -

@sts106mat said:

@ghostwarrior786 said:

@sts106mat said:
@Nightflash28 said:

Selling another company's shares is not what downsizing means...

they are downsizing their investment in square enix to zero.

'Reducing the size of a company by eliminating workers and/or divisions within the company' - definition of downsizing

u are wrong

would you rather i changed the topic title?

It'd be more accurate, but it's not like most topics in SW don't have sensationalist titles.

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#26 Posted by finalstar2007 (27911 posts) -

LOL does TC knows how business works? this is bad news for Square Enix NOT Sony so Sony is getting over $40million of profits.

do you even know what downsizing means?

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#27 Posted by sts106mat (24167 posts) -

@musicalmac: well thanks, at least someone appreciates me posting a news story.... a lot people seem very worked up for one reason or another.....

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#28 Edited by Opus_Rea-333 (1238 posts) -

Rumors: Pitbull the commercial cuban music artist is planning to buy Playstation brand but will sell most of Sony ips to get most his money back or else his wife might get furious.

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#29 Posted by sts106mat (24167 posts) -

@finalstar2007 said:

LOL does TC knows how business works? this is bad news for Square Enix NOT Sony so Sony is getting over $40million of profits.

do you even know what downsizing means?

oh look another sony defense force grunt getting butthurt about a single word in my topic title (which has now changed)

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#30 Posted by Heil68 (57720 posts) -

SONY is on a ROLL guys. The PS4 is paying off not to mwention the by gamers for gamers mantra.

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#31 Posted by sts106mat (24167 posts) -

@misterpmedia said:

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

how can my thread backfire? I haven't even commented on what this means for sony.....i just posted the news.

hahaa wow cows in a super spin

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#32 Posted by nintendoboy16 (33517 posts) -

@Stevo_the_gamer: I always thought they were since the PSOne was around. Although after Square's recent struggles, I don't blame them.

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#33 Edited by musicalmac (24890 posts) -

@sts106mat said:

@musicalmac: well thanks, at least someone appreciates me posting a news story.... a lot people seem very worked up for one reason or another.....

It's not about you, it's about a company that at one point exclusively supported Sony consoles with hugely anticipated RPG titles. It's not exactly surprising that Sony is getting out, between their financial woes and the fact that SE has been releasing FF titles on Microsoft's hardware, as well (not to mention FFXIV on PC).

But like I said, it wasn't too long ago that new FF games were exclusive to Playstation. However, times have changed. This news really is compelling.

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#34 Posted by Nightflash28 (2334 posts) -

@sts106mat said:

@finalstar2007 said:

LOL does TC knows how business works? this is bad news for Square Enix NOT Sony so Sony is getting over $40million of profits.

do you even know what downsizing means?

oh look another sony defense force grunt getting butthurt about a single word in my topic title (which has now changed)

This has nothing to do with butthurt fanboys but your incorrect use of the word downsizing and thus giving the title of your thread an entirely different meaning. I hope you don't work in a corporate environment.

And yes, thanks for changing it.

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#35 Posted by finalstar2007 (27911 posts) -

@Desmonic said:

@Stevo_the_gamer said:

Sony was invested with Square? Eek. Smart move to bail out there.

I *think* it was at a time SE needed some extra cash or something and Sony decided to help them (since in theory it would also benefit them in terms of games). Though today it makes little sense.

Every risky project used to affect Sony before but now with this move Sony will not be effected by any risky projects ( and no more getting rewarded by successful projects ) which is great but at the same time if other companies follow what Sony is going to do then we may not see anymore innovative projects from Square Enix but they will try to be safe and make projects that are known to people and not take risks on new IP's.

Sony used to back them up but not anymore now that they are selling its shares, this is good it will force SE to create faster projects and good ones too!

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#36 Edited by misterpmedia (6209 posts) -

@sts106mat said:

@misterpmedia said:

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

how can my thread backfire? I haven't even commented on what this means for sony.....i just posted the news.

hahaa wow cows in a super spin

Your intention was clear by the fact you've already had to change the Topic title for inaccuracy. If you're gonna troll at least do it right.

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#37 Posted by PinkieWinkie (1454 posts) -

Smart move by Sony. Square can't afford to make exclusives anymore and they have been going downhill.

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#38 Posted by hoosier7 (4166 posts) -

@misterpmedia said:

@sts106mat said:

@misterpmedia said:

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

how can my thread backfire? I haven't even commented on what this means for sony.....i just posted the news.

hahaa wow cows in a super spin

Your intention was clear by the fact you've already had to change the Topic title for inaccuracy. If you're gonna troll at least do it right.

Lol rumbled.

Anyway i'd do the same, Squeenix is a shambles at the moment.

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#39 Posted by sts106mat (24167 posts) -

@Nightflash28 said:

@sts106mat said:

@finalstar2007 said:

LOL does TC knows how business works? this is bad news for Square Enix NOT Sony so Sony is getting over $40million of profits.

do you even know what downsizing means?

oh look another sony defense force grunt getting butthurt about a single word in my topic title (which has now changed)

This has nothing to do with butthurt fanboys but your incorrect use of the word downsizing and thus giving the title of your thread an entirely different meaning. I hope you don't work in a corporate environment.

And yes, thanks for changing it.

i am office based, I work in the construction industry, so yes, corporate environment.

People really got upset about my use of the word "downsize", 99% of threads in SW have titles that are supposed to get people at it.

@musicalmac said:

@sts106mat said:

@musicalmac: well thanks, at least someone appreciates me posting a news story.... a lot people seem very worked up for one reason or another.....

It's not about you, it's about a company that at one point exclusively supported Sony consoles with hugely anticipated RPG titles. It's not exactly surprising that Sony is getting out, between their financial woes and the fact that SE has been releasing FF titles on Microsoft's hardware, as well (not to mention FFXIV on PC).

But like I said, it wasn't too long ago that new FF games were exclusive to Playstation. However, times have changed. This news really is compelling.

i didn't mean it to be about me. I must admit, i agree with you, it is a big shift. Had sony not been late with the PS3, who knows how last gen would have turned out.

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#40 Posted by shawn30 (4390 posts) -

@misterpmedia said:

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

Not bad news as in the roof is caving in today, just telling as Sony is in dire need of cash and their Quarterly Report is due soon. It ain't gonna be pretty. Don't worry, your precious PS4 will be safe and sound. But seriously, as a company Sony is doing things to stave off a potential downward spiral they can't get out of. Good for them to make every move they can to avoid that, but you can't avoid that they are in a very dangerous place right now.

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#41 Posted by sts106mat (24167 posts) -

@misterpmedia said:

@sts106mat said:

@misterpmedia said:

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

how can my thread backfire? I haven't even commented on what this means for sony.....i just posted the news.

hahaa wow cows in a super spin

Your intention was clear by the fact you've already had to change the Topic title for inaccuracy. If you're gonna troll at least do it right.

well duh, this is SW, expect sensationalism,,,you yourself are guilty of it probs.

i didn't have to change the title. i actually like the new one better though.

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#42 Edited by musicalmac (24890 posts) -

How does a company sell off past investments as a means of expanding its influence in the marketplace?

This is downsizing. Should have stuck to your guns, TC. I'd encourage you to put it back.

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#43 Posted by misterpmedia (6209 posts) -

@shawn30 said:

@misterpmedia said:

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

Not bad news as in the roof is caving in today, just telling as Sony is in dire need of cash and their Quarterly Report is due soon. It ain't gonna be pretty. Don't worry, your precious PS4 will be safe and sound. But seriously, as a company Sony is doing things to stave off a potential downward spiral they can't get out of. Good for them to make every move they can to avoid that, but you can't avoid that they are in a very dangerous place right now.

Lol that amateur forecast. I know a lem's favourite topic is Sony's financials but c'mon, you even said it yourself Sony needs cash, so why not sell a now worthless investment? Seems like good news. The foreboding is lem manufactured.

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#44 Posted by sts106mat (24167 posts) -

@musicalmac: I did respond to another poster that Sony were "downsizing their investment in SE" but certain people really didn't agree with it

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#45 Posted by misterpmedia (6209 posts) -

@sts106mat said:

@misterpmedia said:

@sts106mat said:

@misterpmedia said:

@shawn30 said:

@kuu2 said:

Nothing to see here Sony is fine and as profitable as ever.

Consistent Cow Response to All Sony Financial News irregardless of obvious implications:

lmfao, lems throwing darts in the dark to try and make this seem like bad news.

I think we're looking at a healthy thread backfire here.

how can my thread backfire? I haven't even commented on what this means for sony.....i just posted the news.

hahaa wow cows in a super spin

Your intention was clear by the fact you've already had to change the Topic title for inaccuracy. If you're gonna troll at least do it right.

well duh, this is SW, expect sensationalism,,,you yourself are guilty of it probs.

i didn't have to change the title. i actually like the new one better though.

Of course but I do it right and don't act like the victim or pretend to be surprised at the reactions in the thread like you're getting in this one. Then change it back to the original topic title.

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#46 Posted by Shewgenja (18997 posts) -

@Desmonic said:

@Stevo_the_gamer said:

Sony was invested with Square? Eek. Smart move to bail out there.

I *think* it was at a time SE needed some extra cash or something and Sony decided to help them (since in theory it would also benefit them in terms of games). Though today it makes little sense.

Right after Spirits Within tanked at the box office. Square lost their ass on the production of that movie and Sony bought up shares seeing it as a good investment opportunity.

Given that the 360 enjoyed exclusive releases from SE last gen, I could definitely see why Sony looked at the shares as dead weight.

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#47 Posted by musicalmac (24890 posts) -

@misterpmedia said:

Lol that amateur forecast. I know a lem's favourite topic is Sony's financials but c'mon, you even said it yourself Sony needs cash, so why not sell a now worthless investment? Seems like good news. The foreboding is lem manufactured.

That sense of institutional financial instability isn't manufactured by fanboys on a gaming website, it's the result of institutional financial instability. As you confirmed -- Sony needs cash. If you're selling things you own as a means to stay in the black, you're in trouble.

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#48 Posted by musicalmac (24890 posts) -

@sts106mat said:

@musicalmac: I did respond to another poster that Sony were "downsizing their investment in SE" but certain people really didn't agree with it

They were wrong to disagree. A company doesn't sell their investments as a means to increase their influence.

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#49 Posted by PinkieWinkie (1454 posts) -

@musicalmac: Maybe Sony knows something about SE that we dont. Who knows.

Do you realize how stocks work?

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#50 Edited by Draign (1821 posts) -

Its going down.