Ubisoft could be heading for privatisation, as the Guillemot family and major shareholder Tencent have reportedly held talks discussing structural changes to ensure the future of the company.
This year has been particularly tough for Ubisoft, as significant underperformance on company and investor expectations has led to falling share prices, compounded by major economic downturn.
The news of potential change first broke via Bloomberg, which alleged Tencent and the Guillemot family was considering a major buyout of Ubisoft, inspired by concerns around its falling share price. While it acknowledged any potential buyout was still in its very early stages, it believed talks had taken place, and that there were plans to overhaul the company’s structure to contend with a range of emerging challenges.
In response to media reports, Ubisoft has acknowledged that it “regularly” reviews the structure and strategy of the company, while stopping short of confirming reports of this alleged buyout.
“Ubisoft has noted recent press speculation regarding potential interests around the Company,” a spokesperson said in a statement sent to several media outlets. “It regularly reviews all its strategic options in the interest of stakeholders and will inform the market if and when appropriate.”
Read: Assassin’s Creed Shadows has been delayed to February 2025
“The Company reiterates that management is currently focused on executing its strategy, centred on two core verticals – Open World Adventures and GaaS-native experiences.”
At this stage, it’s unclear how far along alleged plans for privatisation are, and whether they will eventuate at all. As noted by VGC, Ubisoft’s share price dropped to the lowest it’s been for 11 years in 2024, causing major concern from investors.
In September, hedge fund AJ Investment published an open letter calling for structural change at Ubisoft, with intentions for this to be a rallying cry for other shareholders. It urged Ubisoft leadership to consider privatisation, or to “implement a comprehensive cost reduction program and optimise staffing levels to be more comparable with industry leaders.”
While AJ Investments is a minor shareholder, the letter garnered much media attention, and caused a ripple within the company’s investor community. It’s unlikely this was the primary catalyst for alleged restructuring talks at Ubisoft, but it did arrive at an inopportune time for the company.
Ubisoft’s next steps remain unclear. As announced, it has recently delayed the launch of Assassin’s Creed Shadows to ensure higher quality, and with a hope for stronger sales.
