Ubisoft's Guillemot Family and Tencent Eye Private Buyout After Flops

Ubisoft is reportedly exploring options to go private, as its founding Guillemot family and shareholder Tencent seek ways to stabilize the company amidst a significant drop in share prices, which have plummeted 54% this year. Following disappointing game launches like XDefiant and Star Wars Outlaws, and the delayed Assassin’s Creed Shadows, Ubisoft is facing increased scrutiny and has seen its shares regain 26.33% in price on news of potential buyout talks. The discussions are still in preliminary stages, with no guarantees for a buyout. The company has acknowledged its recent performance shortcomings and aims to enhance its operational execution.

Ubisoft is struggling with high-profile game flops, significant stock price drops, and cultural issues within the company. The recent releases have not met sales expectations, leading to delayed projects and staff dissent.

Ubisoft has been a major player in the gaming industry, known for franchises like Assassin's Creed, Far Cry, and Tom Clancy's series. However, recent financial troubles have highlighted vulnerabilities, including misalignment between player expectations and game quality, prompting discussions around potential restructuring or ownership changes to reinvigorate its market position.