Ubisoft hires advisors to review options ahead of a potential buyout

Ubisoft, a French video game maker, revealed that it had appointed advisors to pursue transformational capitalistic and strategic options. The company had previously revealed that its founding family was considering a potential buyout. 

Ubisoft revealed on January 9 that it had onboarded “leading advisors” to explore various capitalistic and strategic options ahead of a looming buyout. The French game maker also announced a further delay in its latest title, “Assasin’s Creed Shadows.” 

Ubisoft hires advisors to pursue capitalistic and strategic options 

Ubisoft justified the appointments by highlighting that it aims to acquire the best value for its stakeholders before its buyout. 

The announcement came after Ubisoft revealed that Chinese tech company Tencent Holdings and the Guillemot family, the company’s founding family, discussed the possibility of a takeover. Ubisoft’s shares surged over 30% after the buyout announcement. 

In his Thursday announcement, Ubisoft CEO Yves Guillemot emphasized that the company was convinced that its assets and franchises could generate more income in various ways. 

Ubisoft added that independent members of the Board of Directors would supervise the process. The company revealed that, per the applicable regulations, it would inform the markets once the transaction was complete. 

In a press release, the CEO said 

“We have taken decisive steps to reshape the Group in order to deliver best-in-class player experiences, enhance operational efficiency and maximize value creation,”

Ubisoft also revealed it would implement cost reductions and intended to take a more selective investment approach. The company added that it expected to reduce its fixed cost base by more than 200 million euros. Ubisoft suggested that XDefiant’s discontinuation in December and the closure of three production studios were part of its new cost reduction measures. 

In August, Ubisoft reportedly laid off 45 employees across offices in the United States. Ubisoft’s spokesperson commented that these cuts were made to align with the company’s objectives. In April 2024, the company reportedly carried out similar layoffs across its global publishing teams to enhance collective efficiency. A month later, the video game maker announced it had reduced its staff by 1700 since 2022. 

The video game maker noted that Q3 bookings were expected to total approximately $309 million, largely due to reduced holiday sales, especially those for Star Wars Outlaws and Defiants, which were discontinued. 

Ubisoft shares recorded a 45% decline in the last year after years of gamers’ backlash over the quality of some titles. The company also recorded net losses amounting to 494 million euros in 2024 and a revenue forecast reduction from 2.3 billion euros to 1.95 billion euros in 2025. 

The plunge is reportedly due to poor sales, the failure of titles such as Star Wars Outlaws, and constant title delays, which have reduced investor interest. 

Ubisoft announces further delay in Assasin’s Creed Shadows launch 

Ubisoft announced a further delay in releasing its latest title, “Assasin’s Creed Shadows.” The game was initially set for launch on November 12, 2024, but was delayed to February 14, 2025, in an announcement in September. According to the video game maker, the title will be launched on March 20, 2025. 

The company said the additional month was aimed at allowing the developers to incorporate player feedback in their gameplay overviews and refine the game. It also noted that it would incorporate gamers’ feedback into the previously released blog posts and videos showcasing the new title’s gameplay features. 

The Vice President Executive Producer of the Assassin’s Creed franchise, Marc-Alexis Cote also commented on the delay on the title’s official X page. He highlighted that the developers received feedback from the gaming community each week. Cote recognized that the developers had made significant strides and believed a few additional weeks would be necessary to improve the user experience. 

Marc-Alexis also emphasized that Ubisoft was committed to delivering quality products and an immersive experience through continuous dialogue between developers and gamers.