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Ubisoft’s stocks have surged by 36% amidst talks of a potential acquisition by Tencent and the Guillemot family.
After the disappointing release of Star Wars Outlaws and a delay in Assassin’s Creed Shadows, Ubisoft revised its financial projections, anticipating a break-even non-IFRS operating income for the fiscal year.
This led to a 29.3% drop in shares over five days, hitting a decade-low for the publisher.
On the Upswing
Speculations of Tencent and the Guillemot family considering a buyout have reignited interest in Ubisoft, with Tencent holding 9.2% and the Guillemot family approximately 20.5% of the publisher’s net voting rights.
As of the latest update on October 7th, shares have risen by 35.8% since October 1st, now valued at €13.68 ($15.01) each, up by one cent compared to last month.
Despite experiencing a significant single-day increase, Ubisoft still has a significant recovery journey ahead following a 52.5% decline over the past year.
Shares have plummeted by 76.4% since 2019, remaining only at 16% of their peak value during the pandemic on January 22nd, 2021, when they were valued at €85.18 ($93.50) compared to €13.68 today ($15.01).
Potential for Growth
AJ Investments, a minority investor, recently urged Ubisoft to go private, advocating for a new CEO and a shift away from focusing on “average games”.
In response to the buyout rumors, Ubisoft released a statement affirming its commitment to exploring strategic options, focusing on open world adventures and GaaS-native experiences.
The company underscored its dedication to creating long-term value for its brands and developing games for diverse audiences.
