"UBISOFT SHARES FALL 17% AFTER IT DELAYS LAUNCH OF NEW 'ASSASSIN'S CREED GAME"

Linktree: https://linktr.ee/AnalyticJoin Analytic Dreamz on the Notorious Mass Effect podcast for an in-depth analysis of Ubisoft's potential shift towards privatization. In this segment, Analytic Dreamz explores the recent discussions involving the Guillemot family and Tencent, aiming to understand what this could mean for Ubisoft's future.Key Points on Ubisoft’s Privatization Consideration:Potential Privatization Discussion: The Guillemot family, founders of Ubisoft, alongside Tencent, a significant shareholder, are contemplating a move to take Ubisoft private following a year marked by financial downturns and unsuccessful game releases. The news of these talks saw Ubisoft's shares drop by 54% earlier in the year, but they experienced a notable 26.33% increase post-announcement.Market Reaction: After Bloomberg reported this potential privatization on October 4, 2024, Ubisoft's stock price soared by over 31%, hitting €14 ($15.35). This jump reflects investor confidence in the stability that privatization might bring. Previously, the stock had plummeted to €9.76 ($10.70), marking its lowest since 2013.Financial Struggles and Strategic Adjustments: Ubisoft has faced setbacks with games like Star Wars Outlaws and the delay of Assassin’s Creed Shadows to early 2025, impacting its share value. The company is now focusing on enhancing its strategy in Open World Adventures and Games as a Service (GaaS), while also deciding to end its exclusivity with Epic Games Store in favor of direct launches on Steam to boost sales.Shareholder Concerns and Influence: With activist shareholder AJ Investments pushing for a sale and claiming support from about 10% of shareholders, pressure is mounting on Ubisoft's management. Meanwhile, Tencent's substantial 9.2% voting rights and the Guillemot family’s 20.5% ownership give them considerable influence over the company's direction.Background and Industry Context: Ubisoft's market value has decreased by over 51% in the last year, currently sitting at around $1.5 billion. Although private equity interest from firms like Blackstone and KKR has been noted, no acquisition has come to fruition. A move to privatization could herald major operational changes under the guidance of Tencent and the Guillemot Brothers.Current Status: While discussions are still in their infancy, Ubisoft remains focused on strategic reviews and strengthening its core operations. No final decisions have been made public, keeping the gaming community and investors in suspense for further developments.Tune in to this segment of Notorious Mass Effect with Analytic Dreamz for a comprehensive breakdown of these pivotal changes in the gaming industry.Support this podcast at — https://redcircle.com/analytic-dreamz-notorious-mass-effect/donationsAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy