Ubisoft is Reportedly Considering a Buyout by Tencent

As a long-time Ubisoft enthusiast with countless hours spent exploring the rich worlds they’ve created, I can’t help but feel a pang of concern as I read about their current predicament. From the highs of Mario + Rabbids Sparks of Hope to the lows of Ghost Recon Frontline cancellations, it seems Ubisoft is at a crossroads.

In the face of numerous cancellations, postponements of games, underperforming big-name titles, and steep drops in stock prices, it’s clear that Ubisoft is facing tough times. According to a recent report by Bloomberg, the company could potentially be exploring the option of selling as a means to navigate through these difficulties.

According to the latest news, Ubisoft might be taken private by Tencent through a potential buyout. However, it’s important to note that this buyout option is just one of several possibilities under consideration by both parties, and their ongoing discussions are still in the early stages. The Guillemot family, founders of Ubisoft, have expressed interest in going private, but nothing is finalized yet.

Over the past year, Ubisoft’s stock value has dropped by more than half, currently valuing the company at approximately $2 billion in market capitalization. Notably, a significant investor, AJ Investments, recently penned an open letter voicing their discontent with Ubisoft’s management and leadership, suggesting that the company should consider transitioning to private ownership.

In 2022, Tencent obtained a 49.9% share and 5% of voting rights in Ubisoft.

Ubisoft has encountered several game titles, including “Mario + Rabbids Sparks of Hope” and “Star Wars Outlaws,” as well as “Prince of Persia: The Lost Crown” and others, that have not sold as strongly as anticipated. Meanwhile, live service games like “XDefiant” and “Skull and Bones” have faced a great deal of criticism.

For several years now, Ubisoft has unfortunately scrapped several games they were working on, among them being “Ghost Recon Frontline”, a sequel to “Immortals Fenyx Rising”, which was known as “Project Q” during development, and numerous other unrevealed titles.

Ubisoft’s upcoming significant game title, previously known as Assassin’s Creed Shadows, has been postponed and will now be available in February of the coming year.

2024-10-04 21:41

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