In the last earnings call, Ubisoft’s management highlighted a list of reforms it was taking to help the company overcome its challenges which included growing negative public perception and plunging stock prices. Now it is alleged the Guillemot family which owns the company and Tencent which owns around 10% stake are considering a partnership to take the company private.
Ubisoft stock has lost more than half of its market value in the last twelve months. According to a recent Bloomberg report, Tencent and Guillemot Brothers Ltd are in talks with advisers to find ways of stabilizing the company.
Those familiar with the matter said talks were in the early stage and there is no guarantee that the options being discussed would materialize into actions. Other possibilities are also on the discussion table.
Last month, Ubisoft’s shares fell to the lowest in almost 11 years. The lackluster reception of Star Wars Outlaws was blamed for the fall in the share price. The most recent dip in the company’s share price happened after it announced that Assassin’s Creed Shadows would be delayed until February 2025. It was previously scheduled to be released in November 2024.
Early last month, a minority investor, AJ Investments, called out Ubisoft and the Guillemot family for blocking the sale of the company. In their opinion, Ubisoft should be sold or taken private. The Slovakia-based investor holds less than 1% stake in Ubisoft.
From releasing bug-laden games to forcing Diversity, Equity, and Inclusion (DEI), several gamers have accused the publisher of being out of touch with the expectations of gamers. The company has had to deal with mounting controversies this year including a backlash from the Japanese community over the portrayal of Yasuke as a Black Samurai in Shadows.
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