Ubisoft, the French video game producer and publisher behind hits like Splinter Cell, Assassin’s Creed, and Far Cry, hasn’t received any good news lately. There are rumors about Ubisoft’s future. According to the latest rumors, Chinese gaming giant Tencent is considering buying Ubisoft. However, Ubisoft keeps its cards close to its chest, stating it “regularly reviews all strategic options in the best interests of its stakeholders.”
The announcement came as Ubisoft’s founders and majority shareholder, the Guillemot family, said they were looking for ways to “stabilize Ubisoft and boost its value.” It’s not the first time rumors of possible acquisitions have surfaced, but could it be an opportunity emerging just in time for the struggling publisher? Most notable was the catastrophic drop in the company’s stock after Assassin’s Creed Shadows was delayed and Star Wars Outlaws sold less than expected and not as well as hoped.
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Tencent eyes deeper involvement in Ubisoft
Tencent already has a 10 percent stake in Ubisoft. However, Guillemot Brothers Ltd, the family-owned company that runs Ubisoft, also owns 49.9 percent of the total. Interest has been piqued in whether Tencent will pursue a broader privatization strategy and the possibility of expansion control. According to the talks, which are reportedly still in the very early stages, one possibility would be to take Ubisoft off the public market.
While this isn’t completely out of nowhere, Ubisoft has been going through a massive shakeup. Since the beginning of the year, the company has let go of staff and reworked its subscription services to better capture its focus as a business. Ubisoft’s statement that it “regularly reviews strategic options” hints that the company is aware of its vulnerable position in the market, which has seen a decline in share value by more than 50 percent this year.
Players have criticized the company for continuously releasing the same game over the last five years. After repeating the game structure they acquired with Fry Cry 3, the company made a Prince of Persia game resembling Death Cells. The company was also criticized for its Woke and SJW culture, and the stock market took a nosedive. The company, which lost almost half of its assets, did not show any improvement despite saying every year that we were aware of its guilt and would clean up its act.
Ubisoft remains silent as talks progress
Ubisoft has confirmed the reports but has remained tight-lipped about the details. Discussions with Tencent and the Guillemot family will remain private, but pressure is mounting on Ubisoft to act. Ubisoft’s shares jumped nearly 40 percent following Bloomberg’s report, suggesting investor optimism about a buyout was building.
The situation will evolve, and we must see how that turns out. Since the announcement of its possible restiveness, Ubisoft’s financial issues, recent focus on live service and pure open-world titles, and spread over multiple franchises make it a company ripe for a shakeup. The gaming community is watching whether or not Tencent will ultimately get more of a role in Ubisoft’s future to see how it will shake up the industry.
Image credit: Ubisoft
