Ubisoft, the renowned gaming company behind Assassin’s Creed Shadows, announced the appointment of advisors to explore strategic possibilities.
In a press release on Thursday, Ubisoft stated, “Leading advisors have been appointed to assess transformative strategic and financial options to maximize stakeholder value.”
Additionally, the company announced another delay for Assassin’s Creed Shadows. The game’s release has been postponed to 20 March, emphasizing improved gameplay quality and engaging Day-1 experiences. Originally slated for November last year, the game had already been pushed to February.
Tencent Eyes Private Takeover
The decision to seek advisory services follows Bloomberg’s October report that Tencent and the Guillemot family might privatize Ubisoft.
Tencent, a major Chinese gaming and social media company, currently holds 9.99% of Ubisoft’s shares. This stake includes 49.9% of Guillemot Brothers Ltd., allowing the Guillemot family to retain governance control. Under the agreement, Tencent cannot sell its Ubisoft shares for five years.
Thursday’s announcement may signal progress in discussions with Tencent or other parties regarding a potential takeover.
The company stated, “Independent Board members will oversee this process, and Ubisoft will notify the market per regulations if a transaction occurs.”
Despite speculation, CEO Yves Guillemot and CFO Frederick Duguet provided limited insight into any deal. “We are actively exploring options but cannot share more details now,” said Duguet.
Financial Challenges and Revised Outlook
Ubisoft has faced steep financial challenges, with revenue and profit margins plummeting during the September quarter. In 2024, its stock dropped by 44%, reaching a decade-low in October after disappointing quarterly results.
On Thursday, the company further downgraded its fiscal guidance. Ubisoft now projects third-quarter net bookings of €300 million, down from €380 million, citing weak holiday sales for Star Wars Outlaws and discontinuing XDefiant.
Fiscal year 2025 bookings are now expected at €1.9 billion, revised from the €1.95 billion estimate in September. Previously, analysts had forecasted €2.42 billion in net bookings.
Ubisoft attributed these adjustments to decisions surrounding Assassin’s Creed Shadows and underwhelming launches, particularly for Star Wars Outlaws. First-half fiscal 2025 net bookings dropped by 22% year-over-year to €642 million. Additionally, the company reported a negative free cash flow of €126 million.
To mitigate losses, Ubisoft has implemented cost-saving measures, aiming for annualized fixed cost reductions exceeding €200 million by FY2025-26 compared to FY2022-23.
“The company remains committed to significant cost cuts and a selective investment approach,” Ubisoft noted in its statement. Despite setbacks, the gaming giant continues to explore paths for recovery and growth.