Industry acquisitions are happening faster than ever before, as both Microsoft and Sony seek to make smart investments and expand their first-party game offerings. With the acquisition of companies including Activision Blizzard, ZeniMax Media,Bungie, and more, it begs the question of whether there are any remaining third-party companies that aren’t at risk of acquisition. Compounding that mystery, a new report indicates thatUbisoftis currently fielding acquisition offers.A report from Bloomberg claims thatUbisoftis drawing what it describes as “buyout interest” from multiple different sources. These sources are quite a surprise, however, as they’re private equity firms rather than established organizations within the video game industry like PlayStation and Xbox. The two firms mentioned by name are Blackstone Inc. and KKR & Co. No potential buyout is said to be near completion, but it’s possible that could change in the relatively near future.RELATED:Ubisoft’s Reflections Studio Working on New Open-World IPBlackstone is one of the largest investors in leveraged buyouts of the past 30 years, with the company’s assets recently measured as over $880 million. Its investments are incredibly diverse, whether it’s the Bellagio resort in Las Vegas, a majority stake in Spanx, Ancestry.com, or a controversial investment in Swedish oat milk company Oatly. KKR has a similarly diverse investment profile spread across real estate, hedge funds, and media. Neither has delved into gaming before, however.
Ubisoft has been caught up in many different controversies in the past several years surrounding sexual discrimination and abuse. As a result, the value of Ubisoft’s shares has dramatically fallen, making it an attractive target for investment companies.Ubisoft chairman Yves Guillemotcurrently holds a 15% stake in the company and is the single largest investor, which has been seen as making Ubisoft vulnerable to hostile takeovers in the past.
To repeat, the buyout efforts are currently described as being in early phases, with both Blackstone and KKR currently studying whether acquiring theFrance-based Ubisoftmakes sense. Further, Ubisoft is said to not have entered “serious negotiations” with any companies regarding potential acquisitions at this time. It’s also possible that Ubisoft has no interest in an acquisition at this point in time, too.
As has been shown over the past several years, never say never. The acquisition ofActivision Blizzard, which admittedly hasn’t closed yet, has shaken the entire industry. If the opportunity to acquire Ubisoft presents itself then it’s no surprise that companies across the line will inquire, whether they’re video game companies or private equity firms.
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