Challenging Times for Ubisoft

Ubisoft has faced a challenging year, with nearly half of its share value lost in 2024. This downturn was primarily a result of the disappointing performance of Star Wars Outlaws and the delay of Assassin’s Creed Shadows. Recent reports suggest that the founders of Tencent and Ubisoft, the Guillemots family, are contemplating a potential buyout of the publisher.

Potential Buyout Consideration

A report from Bloomberg, citing sources familiar with the matter, revealed that Tencent and Guillemot Brothers Ltd are exploring their options regarding Ubisoft. Currently, both parties are minority shareholders in the company, with Tencent holding around 9% of the shares and Guillemots owning approximately 20.5%.

Minority shareholders have voiced their concerns about Guillemots’ leadership in recent months, urging the board to either take Ubisoft private or facilitate a sale to a strategic investor.

Shareholder Frustration and Industry Impact

Shareholder frustration has been mounting, particularly following the underwhelming performance of Star Wars Outlaws. Consequently, Ubisoft made the unconventional choice to delay the release of Assassin’s Creed Shadows, their flagship Q4 title. Despite the game being ready for launch, Ubisoft opted to incorporate additional features and story quests to enhance its reception upon release in February.

The consideration of a buyout saw Ubisoft shares increase by approximately 33% in response to the Bloomberg report.

Past Acquisition Speculations and Future Prospects

Rumors surrounding a potential acquisition of Ubisoft have circulated for years, from private equity interest in 2022 when Tencent became involved, to Vivendi’s persistent attempts to acquire the company in the past decade. Guillemot had previously indicated a willingness to sell if an offer were made, and now it remains to be seen if other shareholders will follow suit.