Ubisoft is going through a very bad time and a pretty radical solution could be being prepared behind the scenes. Enough to significantly change the history of the French publishing house.
Ubisoft, the video game giant, could soon be experiencing a major shakeup. According to sources familiar with the matter, Tencent Holdings and the Guillemot family, founders of Ubisoft, are considering several options to turn around the company after a significant decline in its stock market value this year. It could move…
A worrying stock market decline for Ubisoft
In 2024, Ubisoft has lost more than half of its value in financial markets. This decline has caused concern among investors and some shareholders, such as AJ Investments, are urging quick action. They either demand that the company be taken off the stock exchange, or sell it to a strategic investor to restart its growth.
Tencent, one of the largest players in the technology sector in China, and the Guillemot family are exploring various solutions to stabilize Ubisoft. These options include the possibility of privatizing Ubisoft, that is, delisting it appears to be under serious consideration. This would allow the company to restructure while escaping the pressures of stock market fluctuations.
A radical solution
However, this is not the only avenue investigated. The two parties are also discussing other alternatives to restore Ubisoft’s value and enable it to better meet future challenges. Minority shareholders, including AJ Investments, are becoming increasingly impatient. They want a radical solution to correct the situation. Whether privatization or sale, they are pushing for rapid change. But nothing has been decided at the moment and discussions are still at an early stage.
Tencent, already a shareholder in Ubisoft, could play a key role in this new strategy. The Chinese company has already invested in numerous game studios around the world and an alliance with the Guillemot family could help Ubisoft get back on track.
These discussions take place in a context in which the video game industry is evolving rapidly. Acquisitions and mergers are becoming more and more common and Ubisoft must adapt to this new dynamic. With the rise of cloud gaming, mobile gaming and subscription services, the French publisher must find a solution to remain competitive in an ever-evolving market.
Source: Bloomberg
