Summary
After recently posting underwhelming results for the first half of the financial year,UbisoftCEO 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 ofUbisoft, 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 spikewhen 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 reportbut 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 itsrecently 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 theunderwhelming sales performance ofStar 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 onUbisoft’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.”
We remain committed to making decisions in the best interests of all of our stakeholders. In this context, as we have already indicated, [Ubisoft] is also 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 ofAssassin’s Creed Shadowsas the upcoming “very ambitious opus” of Ubisoft’s flagship franchise, further describing it as an “exceptional experience on day one.” WhileAssassin’s Creed Shadowswas 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.
Ubisoft
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.
