A new report has emerged which suggests Ubisoft’s founders, the Guillemots, and investor Tencent are potentially considering a private buyout of the company to fend off investor challenges.
According to Bloomberg (note: report behind paywall), which cites the usual “people familiar with the matter”, Tencent and the Guillemots have been discussing “ways to stabilize Ubisoft and bolster its value” with financial advisors (that’s Bloomberg’s wording).
One of the possibilities being discussed by the Guillemots and Tencent is a teamup to enact a private buyout of the company, which would take it off the market, theoretically putting an end to the demands of public shareholders and companies.
Recently, Ubisoft has come under fire from some shareholders, particularly activist investment company AJ Investments, which publicly criticized Ubisoft recently over its “current performance and strategic direction”.
AJ Investments’ suggestions for improvement included a private buyout, changing management and ousting the Guillemots, and others, but whatever the outcome, the shareholder clearly wants fundamental structural change.
In late September, AJ Investments claimed it had the support of around 10% of Ubisoft’s shareholders in its demands, and that, combined with French union STJV threatening strike action over return-to-work policies and purportedly low salaries, has likely been a thorn in the Guillemots’ sides.
All of this also comes alongside a delay to Assassin’s Creed Shadows; the game was originally intended to come out in November, but it’ll now launch in February, although said delay doesn’t appear to have anything to do with the ongoing controversy surrounding the game’s co-protagonist Yasuke.
As Bloomberg points out, Ubisoft stocks sunk to their lowest in over ten years after the delay was announced, although it’s worth noting that alongside the delay, Ubisoft also revealed sales of Star Wars Outlaws hadn’t been particularly strong.
If there is a buyout, it’s likely the majority of the cash will come from Ubisoft investor Tencent, especially since the company also has an almost 50% stake in the Guillemots’ holding company.
Of course, no official announcement has been made yet, and Bloomberg points out that its sources say Tencent and the Guillemots “are also considering other options”. We’ll bring you more on this as soon as we get it.
