Ubisoft is in trouble, and many have been speculating whether a buyout is on the cards. Now, the publisher has responded, but they didn't shut down the rumor as completely as we expected...
It has been a rough few months for Ubisoft. From the disastrous flop of Star Wars Outlaws, to the delay of Assassin’s Creed Shadows and the underperformance of XDefiant, they can't catch a break. Hence, Ubisoft's stock price has unfortunately fallen by 60% over the last 12 months! No wonder then there are rumors of a potential buyout.
Last week, Bloomberg reported that Tencent, one of the biggest internet technology companies in the world, was in talks with the founders of Ubisoft, the Guillemot family, about possible solutions to steady the ship. Tencent is an incredibly successful Chinese company, who already own a 10% stake in Ubisoft, so it's no surprise that they're interested.
Ubisoft acknowledge rumors without shutting them down
In the wake of Bloomberg's report, Ubisoft’s share price rose by 40% in comparison to the week previous, and it gave them the confidence to acknowledge the rumors publically. In a statement given to VGC, Ubisoft confirmed that they were indeed at least reviewing their options, as they regularly 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.
Of course, we have to expect these kinds of guarded, noncommittal answers, but significantly, they haven't ruled out the possibility of a Tencent buyout here, which they could easily have done.
Given the state of the company, we do expect major news soon, but until then all we can do is await further updates.
What are your thoughts on Ubisoft's current crisis, can the once-revered publisher be saved?