Ubisoft Engages Advisors to Explore Strategic Alternatives

Ubisoft has enlisted the services of advisors to assess various strategic and financial options, following the initiation of comprehensive reviews aimed at enhancing the company's overall performance. According to Yves Guillemot, Ubisoft's CEO and co-founder, "We have taken proactive measures to transform Ubisoft, focusing on delivering exceptional player experiences, streamlining operations, and maximizing value creation." Guillemot further stated, "The appointment of advisors marks our active exploration of strategic and financial options to unlock the full potential of our assets. We are confident that multiple paths exist to generate value from Ubisoft's extensive portfolio of assets and franchises." As part of the ongoing evaluation process, Ubisoft has made the decision to delay the release of Assassin's Creed Shadows by an additional month. Initially slated for release on November 15, 2024, and later rescheduled for February 14, 2025, the game is now set to launch on March 20, 2025. Guillemot expressed his support for the development team, saying, "We stand behind our teams' efforts to create the most ambitious Assassin's Creed title to date." Elaborating on the delay, Guillemot added, "We have chosen to allocate an extra month for the development of Shadows, allowing us to incorporate valuable player feedback gathered over the past three months. This will enable us to fully realize the game's potential and conclude the year on a strong note." During a subsequent investor call, Ubisoft addressed speculation surrounding potential buyout discussions with Tencent. CFO Frederick Duguet stated, "We will not comment on specific market rumors. If a transaction materializes, we will inform the market accordingly." Ubisoft has committed to continuing its cost reduction efforts and exercising caution when it comes to investments. The company anticipates a reduction of €200 million in its fixed cost base. Ubisoft's estimated Q3 net bookings are expected to be €300 million, which is lower than anticipated due to the underperformance of Star Wars Outlaws and the discontinuation of XDefiant last month. For the full year, Ubisoft has forecasted net bookings of €1.9 billion, with expectations of new partnership opportunities for its games and franchises, as well as the monetization of streaming rights acquired in the previous fiscal year.