Microsoft actually tried to buy SquareSoft back in 1999. SquareSoft would only offer them 40% of the company for 2.5 billion dollars which was shocking since all of SquareSoft wasn't even worth that much at the time. I think it was because at the time they were worried about becoming an exclusive company to a future Microsoft console (the Xbox didn't exist at that point though but that's the only logical reason business analysts could come up with for why they wanted so much from Microsoft and why the deal fell through). Later on SquareSoft approached Sony and sold 19% of the company to Sony for 125 million dollars (they needed money after their Final Fantasy movie flopped).
source: http://www.gamesindustry.biz/content_page.php?section_name=dev&aid=374
