In recent years, the video game industry has gone through a strong transition period, where independent studios have been acquired by larger companies such as Sony, Microsoft, Tencent, NetEase and the like.
As Microsoft struggles to get approval for its merger with Activision Blizzard, many are wondering who the next solo developer will be acquired. Apparently, Ubisoft is ready for this process, but it seems that the big companies are not finding it a good idea to invest in it.
android
September 29
rumors
11 Jan
Ubisoft has a strong catalog, with many iconic franchises such as Prince of Persia, Assassin’s Creed, Rayman, Just Dance and so on, also having a strong presence in mobile games, but in recent years, the company has found it difficult to succeed major launches, in addition to also being experiencing many development problems, which led to the postponement or total cancellation of projects.
The publisher didn’t release many games last year, and the few that did hit stores, including Rainbow Six Extraction, Roller Champions, and Mario + Rabbids Sparks of Hope, underperformed. Added to this, the French company announced this week that three other titles, which had not even been announced, were canceled and the troubled Skull and Bones, an open world piracy game, had its launch postponed once again (expected now for next year fiscal year 2024).
Amidst these problems, speculation is mounting that Ubisoft is looking for a buyer, and according to renowned video game industry insider Jeff Grubb, that is indeed the case. According to Grubb, Ubisoft “made the probes” by proposing an acquisition/merger to various players in the tech and entertainment fields, but they “mostly got ridiculed”. Whether it was because suitors didn’t see the value in Ubisoft or if management was simply asking too much for the company remains to be seen.
Ubisoft has definitely toured the market proposing acquisitions and mergers with other similar companies, and most have ridiculed it. It’s too heavy. Its strength was its distributed development framework, but now it is a white elephant. I hope they try to get past that because I think it might hold more people than if they tried to “thin down” for a merger and acquisition. Either way, though, it looks bleak. Making games is a tough business.
Last year, Tencent made a massive investment in Ubisoft, increasing its stake in the company’s shares to 11%, in addition to also acquiring 49.9% of the shares of the company Brothers Limited, which belongs to the Guillemot family, founder of Ubisoft and which holds 15% of the developer’s shares.
While we have to consider the above rumors with caution, it’s not hard to imagine that Ubisoft is in fact looking to be bought out, but now it remains to be seen if they will be able to stand independently until that happens or if they will have to suffer a sharp devaluation first.
Who do you think might buy Ubisoft?
