Ubisoft Reportedly Considering Significant Changes to Its Structure

Ubisoft and Tencent are reportedly exploring various options to stabilize the company's operations and prevent further drops in its stock price.

As reported by Bloomberg, the Guillemot family, which founded Ubisoft, and Tencent have had early discussions about potentially turning Ubisoft into a private company or even allowing Tencent to buy it out entirely. These talks are still in their preliminary stages, so any major changes may take time to materialize. Additionally, there's no certainty that these conversations will result in action, but both Tencent and the Guillemot family are said to be open to exploring other alternatives.

As of April, Tencent owned 9.2% of Ubisoft's net voting rights and currently holds 49.9% of the Guillemot Brothers' holding company’s indirect stake. Hedge fund AJ Investments, a minor shareholder, recently published an open letter urging Ubisoft to go private and adopt a new strategy to revitalize the company.

Ubisoft’s shares hit a seven-year low last month, dropping by 12.6% following disappointing sales for Star Wars Outlaws. Additionally, Ubisoft decided to delay Assassin’s Creed Shadows from its original November 15 release date to February 14, 2025, after learning lessons from Star Wars Outlaws. To boost sales, Ubisoft is also returning to Steam for future game releases, offering its titles on the platform at launch in an attempt to capture a wider audience.