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Ubisoft Addresses Buyout Rumors Amid Financial Struggles

Ubisoft has recently acknowledged reports of a potential buyout, with sources suggesting its founding family, the Guillemots, is considering taking the company private alongside Chinese tech giant Tencent. This comes after Bloomberg reported that Tencent, which already owns 10% of Ubisoft, and the Guillemot family have discussed stabilizing the company after a rough year.

Company Response to Speculation

In a statement, Ubisoft stated that it “regularly reviews all its strategic options,” and further noted that any decision would be made “in the interest of stakeholders.” They emphasized that current management is focused on executing its existing strategy, particularly within two key areas: Open World Adventures and GaaS (Games as a Service) experiences.

The news has impacted the market positively, with Ubisoft’s share price climbing nearly 40% after the initial report. However, the company’s financial woes persist, including its share price hitting an 11-year low after delays in Assassin’s Creed Shadows and underwhelming sales of Star Wars Outlaws. These challenges have led to calls from a minority investor for Ubisoft to either go private or sell to a strategic investor.

Hedge fund AJ Investments even published an open letter urging the company to make significant structural changes, further fueling speculation about Ubisoft’s future.

Solomon Thompson

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