Bloomberg: Ubisoft Could Get Acquired
Ubisoft could be the next video game company to become a takeover target. The French developer and publisher of such series as Assassin's Creed and Far Cry has once again caught the attention of investors.
- According to anonymous Bloomberg editors, investment funds (including Blackstone Inc. and KKR & Co.) are exploring the possibility of acquiring Ubisoft;
- All parties declined to comment. However, the French company stressed that it is ready to pursue various opportunities.
Bloomberg reports about a possible acquisition of Ubisoft, citing statements of people directly involved in the topic. Sources decided to remain anonymous because the information they shared is private.
Among the companies investigating the condition of the French company are reportedly Blackstone Inc. and KKR & Co. - investment funds known for their work in various business sectors. The talks are said to be at a very early stage. It is possible that the final negotiations will not even take place.
Ubisoft does not comment on a possible takeover
Bloomberg noted that over the past year the value of Ubisoft shares on the Paris Stock Exchange fell by as much as 41%, which was due to delays in the production of new titles and concerns about their quality. The current evaluation of the company is 4.8 billion euros, and the largest investor remains the Guillemot family (15% of shares). Its members established Ubisoft in 1986 and Yves Guillemot has been the president of the corporation for years.
- Representatives of investment funds Blackstone Inc. and KKR & Co. decided not to comment on the article.
- In response to Bloomberg's report Ubisoft published an evasive statement, in which it stressed that it has a strong portfolio and is ready to take advantage of any opportunities currently offered by the industry. At the same time, the French developer and publisher refrained from commenting directly on the potential acquisition.
- It is worth recalling that in 2018 Ubisoft defended itself against the actions of the Vivendi conglomerate. Ultimately, Guillemots' "child" managed to avoid a hostile takeover Among other things, thanks to the help of the Chinese Tencent.
Games from Ubisoft's stable may attract the interest of industry giants
With its extensive catalog of games, Ubisoft can be a tasty morsel for many giants. The French company has to offer not only its most rapidly developing series - such as Assassin's Creed, Far Cry or Watch Dogs - but also numerous "minor" brands, e.g. Rayman, Prince of Persia and Tom Clancy's Splinter Cell.
One of the interested parties may be the aforementioned Tencent, which owns a minority stake in Ubisoft. The Chinese giant probably would not want to share the "cake" with other big players. Among them is, of course, Microsoft, which seems to have no second thoughts (or limits) about acquisition of more developers.
This would fit in with the Redmond company's strategy, especially since the Game Pass service will soon include more Ubisoft games. It's possible, however, that the company will be too busy concluding the acquisition of Activision Blizzard. The least likely seems to be interest from Sony, although PlayStation owners may yet surprise us. Recently, they announced that the purchase of Bungie is just the beginning of significant investments for them.
With this amount of information we can only guess what will be the future of Ubisoft. It is possible to see both it maintaining its current state, as well as the acquisition by one of the concerns - not necessarily directly related to the video game market.
