Ubisoft has addressed a recent report about its potential buyout. However, the French publisher didn’t go into detail about its strategic business plans.
Star Wars Outlaws
In an official statement on October 7, Ubisoft said it was aware of what it called “recent press speculation.” The company noted that it “it regularly reviews all its strategic options in the interest of its stakeholders and will inform the market if and when appropriate.”
Last week, Bloomberg reported on the talks between the Guillemot family, Tencent, and advisors on the company’s future. According to sources familiar with the matter, the parties have been considering various options, including buying out Ubisoft and taking it private.
This news had a positive impact on the company’s stock. When the stock exchange opened on Monday, Ubisoft shares were trading at €15.25 per share — up 40.38% from where they were before Bloomberg published its article.
At the time of writing, the price was €13.86 per share, up 36.23% over the past five days.
In its public statement, Ubisoft added that its management is currently focused on executing a business strategy previously outlined in its financial reports. It is built on two core pillars:
- “Open World Adventures” — franchises like Assassin’s Creed and Far Cry, as well as new single-player titles like Star Wars Outlaws (Ubisoft estimates the entire market of AAA open world games at €25 billion);
- “GaaS-native experiences” — multiplayer games aimed at long-term retention, including Rainbow Six Siege and the recently launched XDefiant (the company estimates the live service market at €120 billion).
Despite its ambitious plans, Ubisoft has been struggling to expand its market share in these areas. XDefiant is reportedly struggling to retain users, with the management demanding the team to improve metrics with the upcoming Season 3. The launch of Star Wars Outlaws sent the company’s shares into turmoil, not to mention the recent decision to postpone the release date of Assassin’s Creed Shadows.