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Ubisoft reportedly unlikely to sell for less than €60 per share (Gamesindustry.biz)

kingfey

Banned
https://www.gamesindustry.biz/artic...y-unlikely-to-sell-for-less-than-60-per-share

Rumours of a Ubisoft buyout continue, but a new report suggests the publisher is waiting until its share price improves.

According to Dealreporter, via Seeking Alpha, shareholders and people familiar with takeover discussions say the price would need to be at least €60 to €70 per share before a deal would be accepted.

A price of €100 per share has been suggested as a better value for the publisher due to its long-term prospects.

It's been reported in recent weeks that Ubisoft is attracting interest from private equity firms such as Blackstone and KKR, who are considering buying the Assassin's Creed publisher.

There were also reports that the Guillemot family may buy the company itself, with CEO Yves Guillemot telling investors during the most recent earnings call that Ubisoft has "everything we need to remain independent."

At the time of writing, the company's share price stands at €48.41, having been declining since the €82.40 reached at the start of the year.

The last time Ubisoft's stock was over €60 was July 7, 2021, when it reached €61.48 per share.

This followed a brief decline in May 2021, but prior to that the publisher was consistently above €60 per share from March 2020 to May 2021, although this is no doubt at least partially due to the boost from the pandemic.

Before the pandemic, Ubisoft's stock stayed at €60 or higher from January 2017 to September 2019, during which it reached a peak of €102.95.

News of buyer interest in Ubisoft comes alongside reports that Electronic Arts has been pursuing a sale for years, its efforts said to be increasing since Microsoft announced its $68.7 billion acquisition of Activision Blizzard at $95 per share.
 

kingfey

Banned
That's a lot of information to digest. Do the math for me and put it out there baby.
to summarize it, they want that $60 per share sale, due to activision selling $95 pershare.
Its why, they arent selling now. They are looking after the big fat payout.
 
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BlueHawk

Neo Member
Ubisoft has; Rayman, Rainbow Six, Far Cry, Assassins Creed, Just Dance, Watch Dogs.

A few of these games are declining in sales, and I feel they are mostly going the Free-To-Play route. They are probably aware their profit margins will decrease in time and want to sell as soon as possible.
 
For the last couple years Ubisoft tried desperately to get that GAAS money.
Multiple BRs. Even messin with NFTs.
If they hit gold like COD or FIFA im sure they wouldnt be lookin to sell right now.
Maybe their Assassins Creed Infinite will be a hit but if not, im sure theyd wanna bounce out the business. Having so many employees is unsustainable.
 

Roni

Member
Pipeline-wise, no one does it better than Ubi right now. That means no fat during production, very little waste and lighting fast time to market.

Problem is, in order to get there a lot of creativity had to be gutted. It's time to take those lessons learned and let the creatives do the driving for a while. The company already runs well, let yourselves build different games again...

They're on the same exact path EA and Konami are, except sports is replaced for GaaS: crowds move on eventually. Then you've streamlined your company into a single team with no creatives left.

User base starts crashing because the arrow of time is a thing and then what?
 
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Dream-Knife

Member
Sony overpaid for their so-so monetization specialities.
They'll make that back and more in the first year.
$3b for bungie, while they bought insomniac for 229. Yup, that is definitely overpaid by alot of margin.

They could have bought cdpr for cheap, and got GOG in the process.
And none of those companies are good at generating passive profit. Sony wants the easy money. Think like PS+ but with even less effort.
 

kingfey

Banned
And none of those companies are good at generating passive profit. Sony wants the easy money. Think like PS+ but with even less effort.
Insomniac is a major powerhouse for Sony making 2 big AAA games, plus they also released miles and ratchet.

CDPR would open the door for PC market, if Sony buys them. GOG has alot of users. With someone like Sony, they can partner with 3rd party devs to put their games on GOG. Also, CDPR knows how to make RPG games.

While bungie has destiny 2, which brings alot of money, its not the same as Sony, spending that much money buying appropriate studios.
Remember Sony has Killzone and Socom.

Also, bungie needs to have destiny 2 on all platforms, in order to generate alot of money. Or else, the revenue it brings would drop, if it becomes exclusive.
 

Jaybe

Gold Member
You’ll get whatever Microsoft gives you Yves
Offer Decide GIF by ABC Network
 
$3b for bungie, while they bought insomniac for 229. Yup, that is definitely overpaid by alot of margin.

They could have bought cdpr for cheap, and got GOG in the process.

Why do people keep trying to compare the insomniac purchase to everything? Insomniac and Bungie are different companies that specialize in different things.
And who says CDPR would be cheap? They are sitting at ~2.7b market value and would probably command a nice premium on top of that. ~4.5b- 5b.
Plus nothing CDPR makes has the money making potential of Destiny 2 and their future GaaS titles/expansions.
 
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Dream-Knife

Member
Not because of Bungie.
They think they have the answers.
Insomniac is a major powerhouse for Sony making 2 big AAA games, plus they also released miles and ratchet.

CDPR would open the door for PC market, if Sony buys them. GOG has alot of users. With someone like Sony, they can partner with 3rd party devs to put their games on GOG. Also, CDPR knows how to make RPG games.

While bungie has destiny 2, which brings alot of money, its not the same as Sony, spending that much money buying appropriate studios.
Remember Sony has Killzone and Socom.

Also, bungie needs to have destiny 2 on all platforms, in order to generate alot of money. Or else, the revenue it brings would drop, if it becomes exclusive.
Insomniac is a traditional publisher, that's not what they're looking for now. They want fortnite money. Bungee has in their eyes the expertise to get constant revenue through GAAS and microtransactions.

Barely anyone uses GOG. Sony isn't doing their own launcher.
 
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SlimySnake

Member
Damn, only $8 billion? Thats dirt cheap compared to Zenimax and especially fucking Bungie for $3.5 billion. WTF was Sony thinking?
 

MadPanda

Member
It's only a matter of time we get a merger and acquisition simulator on steam. If I knew anything about making games I'd be making it right now. All these news and this whole year feels exactly like that.
 

DT MEDIA

GAF's Resident Saturn Omnibus
Private equity firms? Aww, crap. We’re screwed if those gangsters get their paws on Ubisoft.
 
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