Update: Ubisoft shares have gone up 30 percent following the report of a buyout.
Ubisoft majority shareholders the Guillemot family are considering teaming up with Tencent for a buyout, according to a Bloomberg report. The news comes amid disappointing sales of last month’s Star Wars Outlaws and the delay of Assassin’s Creed Shadows, in a year where Ubisoft has lost almost half its market value.
Now, Bloomberg reports the Guillemot family is speaking to advisors in a bid to stabilize the company and increase its market value, with the buyout being one potential option. Ubisoft shares have fallen 40 percent this year, with the company now valued at €1.8 billion ($2 billion).
The Guillemot family owns 20.5 percent of Ubisoft and Tencent 9 percent, according to the firm’s latest annual report, with a potential team up allowing the two to take the company private. Since the publication of the Bloomberg report, Ubisoft’s share price has increased dramatically, already rising 30 percent at time of writing.
Last month, Ubisoft's share price dropped to its lowest in 11 years. A minority shareholder—hedge fund AJ Investments— posted an open letter calling on Ubisoft’s board members to consider taking the publisher private.
The letter was followed by the one-two punch of Assassin's Creed Shadows' delay to February 14, 2025, and French Ubisoft employees calling for a strike over a mandated return to offices. Ubisoft has laid off 45 employees this year to date. Yves Guillemot, Co-Founder and Chief Executive Officer, sent out a letter to investors on September 25:
“Our second quarter performance fell short of our expectations, prompting us to address this swiftly and firmly, with an even greater focus on a player-centric, gameplay-first approach and an unwavering commitment to the long-term value of our brands. Although the tangible benefits of the Company’s transformation are taking longer than anticipated to materialize, we keep on our strategy, focusing on two key verticals—Open World Adventures and GaaS-native experiences—with the objective to drive growth, recurrence and robust free cash flow generation in our business.”
“In the light of recent challenges, we acknowledge the need for greater efficiency while delighting players. As a result, beyond the first important short-term actions undertaken, the Executive Committee, under the supervision of the Board of Directors, is launching a review aimed at further improving our execution, notably in this player-centric approach, and accelerating our strategic path towards a higher performing model to the benefit of our stakeholders and shareholders.”
Update: Ubisoft has released the following statement in response to Bloomberg's report: "Ubisoft has noted recent press speculation regarding potential interests around the Company. It regularly reviews all its strategic options in the interest of its stakeholders and will inform the market if and when appropriate. The Company reiterates that management is currently focused on executing its strategy, centered on two core verticals – Open World Adventures and GaaS-native experiences."
Read more about:
UbisoftYou May Also Like
