Last week Ubisoft announced their expected half-year earnings report would be delayed by a few days. The delay caused no small amount of speculation, with some gamers even wondering if this was a prelude to bankruptcy. Not helping was Ubisoft’s request that Euronext pause trading of company stocks and bonds. It’s been five days since the initial announcement, and while the report hasn’t been forthcoming, Ubisoft has clarified it will be published before this Friday.
The date an earnings report is released can send different signals to investors. Earlier reports tend to have good news, and later reports tend to be bad news. Given Ubisoft’s delay and request for trading suspensions, some are fearing the worst for the company. But one rumor of a potential buyout has started to spread, and it all ties back to Ubisoft’s new studio.
Rumors of a Coming Buyout
Earlier this year, Ubisoft entered into a new partnership with Chinese gaming giant Tencent. The two companies founded Vantage Studios, in charge of Ubisoft’s most valuable IPs: Assassin’s Creed, Far Cry, and Rainbow Six. On paper, the studio’s purpose is to revitalize development of these franchises. But as many have pointed out, the rights to the properties are now in Vantage’s hands, keeping them safe for CEO Yves Guillemot in the event of Ubisoft’s collapse. Not helping the rumor is the fact Guillemot’s son is one of the executives in charge at Vantage.
It’s no surprise then, that gamers are speculating Tencent is attempting a total buyout of Ubisoft. The rumor isn’t new, in fact last December shareholders were discussing the structure of a possible buyout. One Issue reported at the time was alleged hesitancy from Tencent. The main issues were over cash flow distribution and the potential of a hostile takeover. Meanwhile, a sticking point for the Guillemot family is they maintain majority control. While nothing materialized at the time, with the change in IP ownership, something may be in the works.
Ubisoft Struggling in a Changing Market
Regardless of the buyout rumors, it’s no secret Ubisoft has been struggling. Their stock has been on a downward trend following the pandemic-era boost many companies coasted on. A recent filing from Ubisoft’s UK branch gives some insight into their recent struggles, and why their earnings report is likely to be bad news.
According to the document, there are two big reasons Ubisoft isn’t bringing in as much money: fewer releases, and an outdated sales model. In the last year, the publisher’s major releases have numbered at just three: Assassin’s Creed Shadows, Star Wars Outlaws, and Just Dance 2025. That’s half the number of major releases versus their 2024 output. The other culprit is their reliance on the “full game” model of releasing. While other companies utilize live-service, subscription, and free-to-play models, Ubisoft has been very reliant on the one-off, single-player release format it is known for.
“Consumers are playing fewer games, playing them for longer and as a result, outside of a few notable exceptions, many new games are struggling to stand out and achieve the sales they may once have had, whilst the market is more volatile and the potential for any specific title less predictable as a result.”
It’s a perfect storm for Ubisoft, and it’s no wonder gamers are expecting a major announcement. Check back with Other Games later this week
