Several Private Equity Firms Reportedly Looking Into Ubisoft Acquisition

Ubisoft might be the next company purchased amid industry-wide mergers like Microsoft’s purchase of Activision Blizzard or Sony’s acquisition of Bungie. Take-Two has also acquired Zynga mobile firm Zynga. 

That’s because Bloomberg is reporting that multiple private equity firms, including Blackstone Inc. and KKR & Co., have been studying the french business, eyeing it for potential acquisition, according to sources the publication says are people with knowledge of the matter. However, despite this, Ubisoft hasn’t reportedly entered into serious talks or negotiation proceedings with these potential purchasers and Bloomberg’s sources say it’s unclear whether Ubisoft’s major shareholder is even wiling to pursue a transaction such as this in the first place. 

That major shareholder is Ubisoft chairman Yves Guillemot, who owns a 15% stake in the Assassin’s Creed and Far Cry publisher. In the past year, Ubisoft’s stock has fallen roughly 41%, bringing its overall market value down to about $5.2 billion. Bloomberg says its sources say “deliberations are at an early stage, and there’s no certainty any of the suitors will proceed with offers.” 

Ubisoft said Bloomberg that it has built a strong portfolio and is positioned “to capitalize on emerging opportunities amid rapid growth in the industry,” although it declined to comment specifically on any acquisition interest. Since news of this potential acquisition interest broke, Ubisoft’s stock has risen by 11%, as reported by Video Games Chronicle. 

Ubisoft might try to fend off a potentially acquired company like it did when it avoided Vivendi in 2018. It remains to be seen whether Ubisoft wants to be acquired or if it’s prepared to stave off such a purchase. 

Ubisoft could be one of the many purchases that will define gaming in 2022, joining other notable acquisitions. Take-Two Interactive (parent company of Grand Theft Auto) announced in January it would acquire mobile firm Zynga. Microsoft then announced a week later that it would be purchasing Activision Blizzard, which is the company behind Overwatch & Call of Duty for a staggering $68.7B. Two weeks later, Sony made it clear it was going to buy Bungie at $3.6B. A few weeks later, Sony also announced it had acquired Jade Raymond’s new studio, Haven.  

[Source: Bloomberg]