Ubisoft, One of the biggest players in the video game industry, with popular titles such as Assassin’s Creed, Prince of Persia and Rayman, is officially for sale. The Yves Guillemot-led company announced it had appointed consultants to “examine and pursue various strategic and capital transformation options to maximize value for stakeholders”.
This would confirm the hypothesis of a possible sale of the company, as suggested by several reports in late 2023, which reported ongoing negotiations with the Chinese company. Tencent For possible acquisitions.
A cost-cutting mission for Ubisoft
Ubisoft’s restructuring is already underway, with cost-cutting expected to continue in the coming months and greater selectivity in investments than in the past. The company plans to reduce More than 200 million euros on a fixed cost basis by FY 2025-26 compared to 2022-23, on an annual basis; Shortages such as the closure of studios located in high-cost areas and the cancellation of projects that did not meet market expectations, for example the closure of the live service XDefiant, the game was only released in May 2024 and already by Ubisoft. was closed.
This also includes the postponement of Assassin’s Creed Shadows to March 20, which removes it from a period full of launches, which now puts it closer to the end of the fiscal year (March 31, 2025), a strategy that balances Can improve. Sheets
Despite setbacks, including the commercial disappointment of the aforementioned XDefiant and Star Wars Outlaws that affected Christmas performances, Ubisoft is confident it can break even, thanks to projected net bookings. 1.9 million euros.
Tencent is up for acquisition.
It’s certainly news to reshape the European balance in the video game sector, but it’s not an unexpected announcement. In fact, rumors have been circulating for some time that Ubisoft, which counts ahead. 18 thousand employees worldwideOf which 4 thousand were for sale in France. Just as rumors were swirling that Tencent, a 10% majority shareholder, was interested in increasing its stake in the French multinational.
Tencent, which recently made headlines for ending up in the spotlight of the US government that listed it as a dangerous entity a few days ago Connection to the Chinese Armyis a true giant with considerable media and financial power. He has shares in many companies related to the world of entertainment, including Epic Games, Lauren, Riot Games and Ubisoft itself, just to stay in the video game sector. Tencent has been trying to take ultimate ownership of the Assassin’s Creed publisher for some time, encountering resistance from the Guillemot family in December. But with the announcement of the sale, the cards on the table may have changed.
Value of Ubisoft
Since 2021, Ubisoft has lost 85% of its market value: in January 2021 it was worth $12.17 billion and was the top European video game company, while currently this figure corresponds to the same. 1.78 billion dollars. This number has decreased by 43% in the last year alone.
And from the point of view of its actions, Ubisoft is going through a difficult situation. Its share value fell 47% in 2024, with a loss of 18.23 euros per share to a current price of 11.65 euros per share, with further declines in recent weeks. If you look at the last five-year period, the overall loss is even more marked, with a 82 percent reduction.
