Square Enix denies going private after report sends stock surging

Square Enix has firmly denied reports suggesting it is considering a private takeover, following a claim made in a Japanese business magazine. Despite a September report from Sentaku magazine hinting that foreign investment funds were interested in acquiring the company, Square Enix clarified in a brief statement that no such discussions were taking place.

This information was not officially announced by the company itself. In fact, the Sentaku report caused Square Enix's stock on the Tokyo Stock Exchange to surge by up to 8.3 percent throughout the day, as reported by Investing.com.

The surge in stock value was attributed to activist investor 3D Investment Partners, which holds around 18.5 percent of Square Enix's shares. This investor allegedly sparked the speculation, having previously urged the company's board to reassess its strategy. Over the past four years, Square Enix has undergone significant restructuring, selling Western studios such as Crystal Dynamics, Eidos Montreal, and Square Enix Montreal to Embracer Group in 2022, and subsequently laying off over 100 employees across the US and UK in 2025 as part of a broader consolidation effort in Japan.

Despite the recent speculation, Square Enix has reported robust financial growth in its first quarter earlier this month. Profit increased by an impressive 175.5% to ¥13.2 billion ($82.9 million), primarily driven by the company's Digital Entertainment segment, which enjoyed high sales in HD Games, MMO, and Smart Devices/PC Browser sub-segments.