As a long-time fan and follower of Ubisoft, I must say these past few months have been a rollercoaster ride for me. From the promising start with Star Wars Outlaws to the disappointing turn of events, it’s been a tough road indeed. The 60% drop in their shares over the last 12 months is a stark reminder of the challenges they face.
Ubisoft has had a difficult period over the past few months, marked by setbacks such as Star Wars Outlaws’ flop, the delay of Assassin’s Creed Shadows, and the underperformance of XDefiant. Consequently, their shares have experienced a significant drop – a decline of 60% in the last 12 months! Given these circumstances, it’s no surprise that there are whispers about a potential acquisition.
Last week, it was reported that Tencent, one of the world’s largest internet technology firms, has been discussing potential strategies with the Guillemot family, the founders of Ubisoft, to help navigate through some challenges. Given that Tencent already holds a 10% stake in Ubisoft and is quite successful as a Chinese company, this interest should come as no surprise.
Ubisoft acknowledge rumors without shutting them down
Following Bloomberg’s report, Ubisoft’s share price surged by approximately 40% compared to the week before, which emboldened them to address the rumors openly. In a statement made to VGC, Ubisoft admitted that they were indeed considering their options, as they routinely do.
Ubisoft has noted recent press speculation regarding potential interests around the company. It regularly reviews all its strategic options in the interest of stakeholders and will inform the market if and when appropriate. The Company reiterates that management is currently focused on executing its strategy, centred on two core verticals: Open World Adventures and GaaS native experiences.
Indeed, it’s not surprising when we receive cautious and vague responses like these. However, what stands out is that they haven’t explicitly denied the prospect of a Tencent takeover, which they certainly could have if it wasn’t true.
With the current situation of our business, significant developments are likely on the horizon. However, for now, we’re simply left with anticipation as we wait for more information to come in.
What are your thoughts on Ubisoft’s current crisis, can the once-revered publisher be saved?
Read More
Sorry. No data so far.
2024-10-08 15:40