There are reports that Ubisoft could become the target of a takeover, possibly by a private equity firm. Should that happen, the publisher and its entire IP catalog could be in new hands.
The original report comes from Bloomberg and says several private equity firms are eyeing a potential deal. Those companies include Blackstone, Inc and KKR & Co, but so far Ubisoft has not entered into negotiations. It is also unclear whether the family of Chairman Yves Guillemot, Ubisoft’s largest shareholder, is ready for a sale. The Guillemot family, who founded the company in 1986, bought back a large stake in Vivendi in 2018 to avoid a hostile takeover and now own 15% of the company.
What is clear is that Ubisoft has seen its stock prices drop significantly over the past few years, with prices trading at $9.02 today with a slight uptick in potential takeover rumours. That’s down 42% from $15.64 a year ago and is one of the reasons the latest sales pitches have been sparked. Although there are no active negotiations, the report said things are early days and nothing is certain.
According to another report by Kotaku, Ubisoft has been reviewing various aspects of the company and evaluating what could happen ahead of a potential sale. With delays in the release schedule for important IPs, such as Assassin’s Creed or Far cry, the speculation is rampant. Ubisoft has also embraced blockchain technology and the play-to-earn philosophy. The company has also seen some serious fallout from allegations of workplace sexual misconduct, as well as senior talent leaving the company.
With a large IP list, a potential deal is valuable, and it comes at a time when we’ve seen Microsoft propose a nearly $70 billion acquisition of Activision Blizzard, Sony buy Bungie, and other deals like Take-Twos Deal for Zynga, it may be a hot time to look for a sale and lift to the books.
https://www.mmorpg.com/news/reports-say-ubisoft-may-be-exploring-a-sale-to-private-equity-firms-after-delays-stock-dips-2000124881 Ubisoft may be looking at a sale to private equity firms following delays and stock declines, according to reports