Ubisoft, the developer behind popular franchises such as "Assassin's Creed," "Far Cry," and "Watch Dogs," announced on Monday that it routinely evaluates "all its strategic options," but refrained from commenting on recent reports regarding potential buyout interest.
As the largest video game company in France, Ubisoft has long been viewed as a potential acquisition target and has seen its stock market value decline by 50% over the past year. The company has faced challenges, including delays and the underperformance of several major titles.
In its statement, Ubisoft indicated that it would update the market when deemed appropriate. A company spokesperson declined to provide additional information to Reuters regarding any inquiries from prospective buyers.
This announcement came in response to a Bloomberg News report from the previous week, which suggested that the Guillemot family, Ubisoft's founders, along with Chinese tech giant Tencent, were exploring a buyout.
Following the statement, Ubisoft's shares initially surged by as much as 6% on Monday, leading the SBF 120 index, but later reversed direction, falling by 1.8% by 0905 GMT.
According to LSEG data, the Guillemot family and Tencent collectively own nearly 25% of Ubisoft's share capital, following a 2022 agreement in which Tencent acquired a significant portion of the Guillemots' stake.
This development comes at a challenging time for Ubisoft, characterized by a series of game delays and changes in management.
Ubisoft's stock experienced a further decline last month due to quarterly sales that fell short of expectations.
The lackluster debut of its new title "Star Wars Outlaws" coincided with a three-month delay in the release of "Assassin’s Creed Shadows," now scheduled for February.
The company had anticipated that these two games would contribute to improving its financial performance while it undertakes cost-reduction measures to address its debt.