- Ubisoft’s shareholders are unsatisfied with the company’s management and recent fiscal earnings.
- Tencent and the Guillemot family, which collectively own a little less than 30 percent, are considering buying the company.
Tencent and Guillemot Brothers Ltd are considering purchasing Ubisoft in its entirety. Rumors suggest that if it is bought out, Ubisoft may go private.
Background
Ubisoft’s shareholders have displayed distrust over its management. A minority shareholder, AJ Investments, gathered the support of 10% of total shareholders and wrote a letter to Ubisoft. The letter called for the company to sell out to Tencent and the Guillemot Family. AJ Investments also shared they have “industry experts” ready to take the helm and steer the company towards success.
Individually, Tencent owns 9.2 percent, while the Guillemot Family, which also founded Ubisoft, owns 20 percent. In 2022, Tencent made considerable investments in Guillemot Brothers Ltd.
Ubisoft’s current titles have fallen below expectations. Their latest release, Star Wars Outlaws, has launched to mixed reviews and less-than-expected sales. Before this, another title, Skull and Bones, marketed as a “AAAA Game,” was received poorly. Ubisoft has also delayed Assassin’s Creed Shadows by three months to next year, further damaging their yearly financial report.
Potential Buyout
Ubisoft’s inefficient management and the poor reception of recent games have caused its share price to fall significantly. Anonymous sources told Bloomberg both Tencent and the Guillemot Family were in the early stages of considering a buyout of Ubisoft.
When news broke, Ubisoft’s considerably low share price suddenly skyrocketed by 31 percent. If a transaction does take place, the sources suggest Ubisoft may become privatized. This may mean good or bad news, depending on who you ask. A private company doesn’t have to answer to shareholders and thus has more creative freedom. However, a major change like this may lead to layoffs and significant restructuring.
The future of Ubisoft is currently unclear as the company prepares to pivot towards a different approach to developing video games. It was once known for making the best titles in the industry and still has household franchises. Ubisoft has not yet commented on these reports.
