Ubisoft Explores Private Buyout Amid Stock Plunge and Struggles with Game Releases

The current state of Ubisoft has become a topic of significant discussion as the company faces challenges stemming from recent game releases and a considerable drop in its stock price. As a response to these issues, the Guillemot family, the founding members of Ubisoft, along with Tencent, a major shareholder, are reportedly exploring the possibility of taking the gaming giant private. This potential move comes amidst disappointing performance from key titles and a staggering decline in share value.

According to sources, consultations are underway with advisors to stabilize the situation at Ubisoft following a 54% decrease in its stock this year. While these talks are ongoing, it should be noted that the possibility of a buyout is just one of many options being evaluated. As of now, Ubisoft has chosen not to provide any comments regarding the discussions.

The Guillemot family's stake in Ubisoft is over 20%, with Yves Guillemot at the helm, while Tencent holds slightly more than 9%. Following the news of these discussions, shares of Ubisoft experienced a notable rebound, increasing by approximately 26.33%.

This year has been particularly harsh for Ubisoft, marked by underwhelming performances from titles such as XDefiant, a competitor to Call of Duty, and the recently released Star Wars Outlaws. In light of the lackluster sales from Outlaws, the company has decided to postpone the launch of Assassin's Creed Shadows to 2025. Furthermore, employees have organized a strike set to take place later this month.

In a recent update to investors, Guillemot acknowledged that the company’s second quarter did not meet anticipated expectations, committing to a comprehensive review aimed at enhancing company operations. He has also commented on the ongoing cultural conversations surfacing within the company, particularly in relation to Star Wars Outlaws and the forthcoming installment of Assassin’s Creed.

Additionally, Ubisoft has made a strategic decision to move away from the Epic Games Store for its timed exclusivity and has returned to launching its PC titles on Steam from day one, a shift that appears intended to counteract the decline in game sales.