Report - Square Enix prepping for another takeover

According to Kotaku, Square Enix is looking set to get ready for another takeover, after ¥35 billion worth of zero-coupon convertible bonds were issued by the company.

Square has been in debt to the tune of ¥50 billion, which has been outstanding since 2005, and must be paid by November.

With the issue of these new bonds, it could wipe out the debt down to ¥15 billion.

However, part of the cash raised could be used with whatever amount of money Square has, rumoured to be ¥80 billion, for another takeover.

"The cost of borrowing monies is so low in the world at the moment that Square Enix is being opportunistic in raising funds on the cheap today, just in case it feels like shopping for something," said Hiroshi Kamide of KBC Securities Japan.

Last year, after a failed attempt at buying Tecmo, the company took Eidos for £84 million, with the developer's European arm re-branded Square Enix Europe to reflect the takeover.

Eidos' Montreal is the only studio from the ex-publisher to keep the Eidos name.