Amidst a string of cancellations, game delays, major titles failing to perform to expectations, and consistent and significant declines in share prices, Ubisoft finds itself on shaky ground, to say the very least. As per a new report by Bloomberg, however, the company may be considering a sale as a way out.
As per the report, Ubisoft and Tencent are considering a buyout of the former by the latter to take Ubisoft private. However, it’s reported that though Ubisoft’s founding Guillemot family is a buyout to go private, it is one of several options being considered by Ubisoft and Tencent, with discussions currently at an early stage.
Ubisoft’s share prices have lost more than half of their value in the last year, with the company’s market cap currently standing at around $2 billion. Last month, hedge fund AJ Investments – a minority shareholder in Ubisoft – published an open letter in which it expressed its dissatisfaction with the company’s leadership and management, and urged it to go private.
Tencent acquired a 49.9 percent stake in Ubisoft in 2022, with the former also getting 5 percent voting rights.
From Mario + Rabbids Sparks of Hope and Star Wars Outlaws to Prince of Persia: The Lost Crown and more, Ubisoft has seen a number of titles failing to sell as well as expected, while live service titles such as XDefiant and Skull and Bones have attracted abundant criticism.
Over the last couple of years, Ubisoft has also cancelled a number of titles that had been in development, including Ghost Recon Frontline, a sequel to Immortals Fenyx Rising, a game that was in development under the codename Project Q, and multiple unannounced titles.
Ubisoft’s next major release is Assassin’s Creed Shadows, which was recently delayed to February of next year.
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