Private Equity Firms Eyeing Ubisoft

Private Equity Firms Eyeing Ubisoft in What could Become the Next Big Gaming Acquisition.

A massive gaming acquisition is on the cards as private equity firms are eyeing buying French gaming company Ubisoft. Ubisoft is one of the leading game developers in the world but is having a tough time in terms of production and stock prices.

Private Equity Firms Eyeing Ubisoft
Private Equity Firms Eyeing Ubisoft

According to a report first shared by Bloomberg, private equity firms could begin contemplating the Ubisoft acquisition.

The top potential candidates showing interest in Ubisoft acquisition are Blackstone Inc. and KKR & Co.

Irrespective of Ubisoft getting sold to private equity firms, the current and former Ubisoft employees believe that the company’s fate is sealed, it is getting sold either way.

The senior employees cite the reasons behind selling the company as its plunging stock price and ongoing production challenges.

As of now two of the major private equity firms interested in the acquisition are busy studying the details of the French business and have “preliminary takeover interest” in Ubisoft.

However, both KKR and Blackstone haven’t yet entered into any official or “serious negotiations with potential acquirers.”

There are also reports of Ubi-soft contacting outside consultancy firms for audit purposes. This is a routine step for companies but when it comes to Ubi-soft, this decision suggests that the company is preparing to clear its books for a potential sale.

Private Equity Firms Eyeing Ubisoft
Private Equity Firms Eyeing Ubisoft

Lately, the video game industry has seen a wave of massive acquisitions where the big ones are consuming the small ones or the ones who are struggling.

GTA publisher Take-Two acquired Zynga, Sony bought Bungie, and who can forget the recent $69 billion acquisition deal where Microsoft has taken over Activision Blizzard.

Ubisoft’s recent share price is $41 per share which is a sharp decrease from $110 in July 2018. So whoever buys Ubi-soft will enjoy a hefty discount.

Will the Guillemot family fend off another acquisition attempt of Ubi-soft? Or will they go for an exit strategy this time? Only time will tell.