Investors cautiously circle Ubisoft in a take over bid

A bit of late breaking financial news for you this Friday. Bloomberg are reporting that a couple of investment firms, Blackstone and KKR, are taking a look at Ubisoft with the possible intention of a buy out.

This is not the first time Ubisoft has drawn interest. EA and Vivendi have both had a go in the past but Ubisoft, the majority of which is owned (and run) by the Guillemot family, has defended itself. The speculation has lead to an impressive 11% jump in the value of Ubisoft shares.

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Recently Analyst Mike Hickey speculated that the company could be sold for a premium. “We think recent deals including Zynga (NASDAQ:ZNGA) and Microsoft (NASDAQ:MSFT)– Activision (NASDAQ:ATVI) has provided a valuation floor for UBI,” Hicker wrote in a note to clients. “We imagine an acquirer would bid an approximate €65 for UBI (up 45%), which would be in-line with MSFT’s consideration of ATVI on a profit multiple.”

But why do you care? Well, to put it in one word: Sony. If Ubisoft is up for grabs then the PlayStation firm is bound to be interested, Microsoft nabbing Activision and with it, some of the biggest franchises in the world, certainly took the shine off the PlayStation brand. Rumours of them sniffing around the French publisher have been around for years and nabbing Assassin’s Creed would be a big win for them.

Ubisoft also have a fairly active multi media arm with Driver, Assassin’s Creed, and Rabbids being turned in to TV shows, and there are also films of Werewolves Within, Tom Clancy’s The Division, and even a senior citizen Esports movie in the works. Sony have PlayStation Productions which is doing a similar thing.

Rather like Activision it appears the recent allegations of sexual misconduct are not putting off investors. We will keep you updated if we hear anymore.

Source: SeekingAlpha

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News Editor, very inappropriate, probs fancies your dad.

2 Comments

  1. As a gamer who isn’t interested in the console wars, what a massive waste of money these acquisitions are.

    All that money spent to buy out third party publishers and studios who were going to release games on your console anyway (assuming the other console manufacturer didn’t buy them anyway).

    Ludicrous amounts of money being spent on these acquisitions which could have been used to grow existing studios or found new ones. Would doubling Naughty Dog’s budget help them produce more games in less time?

    All I see is Microsoft and Sony pissing away potential development budgets purely to spite the other. Such a waste

    • Yeah, but then they’re not making all the money from those games. Part of the equation is exclusivity, but another is simply market reach in general and having IP. Microsoft hasn’t cracked the Asian market, but Blizzard games absolutely have. Sony’s not really done much online gaming for 10 years, but Bungie has become an expert (and will still have autonomy).

      It’s also incredibly difficult to build up a new studio or even expand an existing one. Jade Raymond’s on her third attempt at Haven Studio (recently acquired) after EA Motive’s early struggles within EA and the Google Stadia stuff. MS set up The Initiative in 2018, but they’ve reportedly struggled and are now leaning on Crystal Dynamics for dev on Perfect Dark. All we’ve seen from Playground Games’ second team is the Fable announcement trailer after 4 years. That’s why both have also made acquisitions of independent studios where there’s already a nucleus to build up around – Housemarque, inXile, Undead Labs – or gone for big studios and publishers that maybe just want financial security/backing to do their best work.

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