Square Enix denies rumors of going private

Square Enix has officially denied reports that it is exploring a move into private ownership. The denial follows speculation published in the September issue of the Japanese business magazine Sentaku, which suggested the company might be taken private due to interest from foreign investment funds.

The rumors caused immediate volatility on the Tokyo Stock Exchange, with Square Enix shares surging by as much as 12% during trading. In an official statement to shareholders, the company clarified that the information was not announced by them and that they are not currently considering taking the company private.

The speculation occurs amid a period of consolidation in the gaming industry, following the recent privatization of Electronic Arts. Observers also noted the presence of 3D Investment Partners, a Singapore-based activist fund, which holds an 18.53% stake in Square Enix and has previously called for management reforms.