Ubisoft is reportedly considering taking the buyout option and going private amid struggles and calls from investors to address various issues.
The Assassin's Creed developer said that it "regularly reviews all its strategic options in the interest of its stakeholders." The situation comes after reports noted that Ubisoft and Tencent were considering a buyout on Friday.
Ubisoft's Current Situation
The buyout would have worked to stabilize and "bolster" the French firm following its sharp decline in market value.
One of the possibilities that is being talked about is teaming up to take Ubisoft private. The discussions were said to be in their early stages and nothing is certain.
Ubisoft's latest statement acknowledged the recent press speculation regarding possible interests around the company. It added that its management is currently focused on executing its strategy and is focused on two core verticals.
These are open-world adventures and Games as a Service-native experiences, also known as GaaS. Ubisoft's share price dropped in September after the studio announced its upcoming title Assassin's Creed Shadows was delayed, according to Eurogamer.
The latest entry in the highly popular franchise is now set to come out on Feb. 14, 2024, instead of the original November release. The company also opted to delay the game after it observed "softer than expected" sales for its other title, Star Wars Outlaws.
Read Also: Ubisoft Releases 'Star Wars Outlaws' Update 1.2 to Fix a Number of Launch Issues
The latter has just reportedly passed the 1 million sales mark despite launching on Aug. 30, 2024, which is more than a month ago. The developments came after a minor investor for Ubisoft wrote an open letter to the company to express their "deep dissatisfaction."
The majority of Ubisoft's recent struggles are said to be self-inflicted, such as a potential class action lawsuit over privacy issues. However, some have been exacerbated by online criticism, including from Tesla creator Elon Musk, Axios said.
Plunging Share Prices
Many people have criticized the studio's latest Assassin's Creed entry as being too "woke" as it includes a lead character who is a Black samurai. Others also expressed their disappointment that the company did not get the character historically accurate.
Tencent is considering buying Ubisoft out with Guillemot Brothers Ltd. If their transaction does push through, they plan to take Ubisoft private. In 2022, Tencent purchased nearly 50% of Guillemot Brothers Ltd. It holds 9.2% of Ubisoft's net voting rights.
On the other hand, Guillemot Brothers Ltd holds about 20.5% of the Assassin's Creed developer's net voting rights, according to Forbes.
Related Article: 'Asassin's Creed Shadows' Gets Delayed Launch as Ubisoft's Other Titles Underperform
