Ubisoft's problems are mounting: the French publisher's shares are rapidly falling in price
Last week, Diversification instead of bankruptcy: Ubisoft and Tencent set up a joint company to acquire the rights to Assassin's Creed, Far Cry and other franchises with Tencent. This company will get the rights to key franchises, including Assassin's Creed, Far Cry and Tom Clancy's Rainbow Six, and the Chinese will own 25% of shares and will be able to influence decision-making.
Immediately after this news, the shares of the French publisher rose by 11%, but as it often happens - it was followed by another fall.
Here's What We Know
On 1 April there is a serious drop in the value of Ubisoft shares. On the US and UK stock exchanges they fell by almost 12%. At the time of writing the value of securities of the game company is € 10.59, although a few days ago it reached almost € 15.
Ubisoft stock price chart
Probably, Ubisoft has accumulated so many problems that neither the deal with Tencent nor the successful release of Assassin's Creed Shadows inspire optimism in investors and cannot positively influence the situation. In addition, there is a high probability that in the near future Ubisoft will have a big wave of layoffs, and such events also lead to a drop in share price.
One thing is obvious, once the most expensive game company in Europe has made a huge number of mistakes and now needs a comprehensive change in its approach to doing business. But whether this can be done without a change in leadership is a big question, and it's already known that Ubisoft CEO Yves Guillemot will become the head of the new company as well.
Source: Insider Gaming, Google Finance
