Ubisoft is Exploring 'Strategic Options' for Its Future

After recently posting underwhelming results for the first half of the financial year, Ubisoft CEO Yves Guillemot has said that the company is exploring its "strategic options." This development further fuels the rumors of a potential Tencent-backed private buyout of Ubisoft, following a series of challenges that have left investors eager for change.

Although it's one of the oldest and most popular names in the games industry, Ubisoft has been through the wringer in recent months. The French company's stock price hit a decade low just last month due to record losses from several big-budget titles that fell short of sales expectations, and several other factors. Interestingly, Ubisoft's stock price saw a sharp spike when Bloomberg released a report earlier this month alleging a possible buyout of Ubisoft by Tencent, which would see the former exit the stock market and go private to rectify its issues.

Ubisoft did address the Tencent buyout report but didn't provide a clear answer about it, only stating that it's "regularly reviewing" its options to best serve stakeholders. If Ubisoft's second fiscal quarter results for financial year 2025 are anything to go by, though, the Tencent buyout seems likelier. In its recently released H1 FY25 report, Ubisoft reported net bookings of €352.3 million ($382 million), meeting revised guidance but still falling short of earlier forecasts. This drop was attributed to the underwhelming sales performance of Star Wars: Outlaws, which, despite a warm critical reception, missed financial targets.

Ubisoft Undergoing Severe Cost-Cutting Measures Due to Financial Dip

Overall, net bookings have seen a 22% year-over-year drop to €642.3 million ($697 million), marking a decline that adds pressure on Ubisoft’s already struggling stock price. The downturn has prompted Ubisoft to take significant cost-saving measures in the past year, such as axing 744 jobs, reducing external spending, and freezing most new hires. CEO Yves Guillemot acknowledged the setbacks, saying that although Ubisoft's H1 FY25 performance fell short of expectations, the company remains committed to revitalizing its creativity and player-centric innovation. Guillemot curiously added that Ubisoft is still looking out for its stakeholders by "reviewing all its strategic options."

While this statement still doesn't provide a meaningful answer to the question of Ubisoft’s potential shift towards privatization, the H1 FY25 results are notable in the context of the company's struggles. Guillemot made special mention of Assassin's Creed Shadows as the upcoming "very ambitious opus" of Ubisoft's flagship franchise, further describing it as an "exceptional experience on day one." While Assassin's Creed Shadows was delayed to February 2025, reportedly to allow the devs some extra time for polishing, only time will tell how well the game does and whether it can help pull Ubisoft out of its financial rut.

Image

Ubisoft

Display card main info widget

Date Founded

March 28, 1986

Headquarters

Saint Mandé, France

CEO

Yves Guillemot

Subsidiaries

Massive Entertainment, Ubisoft Paris, Ubisoft Quebec, Ubisoft San Francisco

Known For

Rainbow Six, Prince of Persia, Far Cry, The Crew

Display card main info widget end

Ubisoft is a well-known video game developer and publisher with a main headquarters in Saint-Mandé, France. Current CEO Yves Guillemot runs an array of teams responsible for some of the most iconic and well-known series in video games, with franchises like Assassin's Creed, Farcry, The Crew, Just Dance, and more. Ubisoft also acts as a parent company for an array of other video game developers, including names like Massive Entertainment, Ubisoft Paris, Blue Mammoth Games, Red Storm Entertainment, and more.

Checkbox: control the expandable behavior of the extra info

Expand Collapse