Ubisoft is preparing for transformation, but refuses to comment on rumors of a sale to Tencent

Amid rumors of a sale to Chinese IT giant Tencent, French publisher Ubisoft announced the appointment of leading consultants to explore “transformational strategic and financial options in the interests of shareholders.”

Image source: Steam (Kazamanagato)

According to Ubisoft CEO Yves Guillemot, the company is “actively exploring various strategic and capital options to unlock the full potential of our assets.”

Ubisoft CFO Frederick Duguet refused to explain to shareholders what kind of transformation options he had in mind, but promised that the company would “inform the market when and if the transaction takes place.”

Image source: Ubisoft

«We have taken decisive steps to transform the Company to deliver a best-in-class gaming experience, improve operational efficiency and maximize value creation,” said Guillemot.

Image source: Ubisoft

In the press release, Ubisoft also said it would continue its highly selective investment and cost-cutting program. As part of the latter, it was decided to close the XDefiant shooter and three studios that did not justify the high costs.

Due to weak results from Star Wars Outlaws over the holiday period and the closure of XDefiant, the company lowered its guidance for the third quarter of the current fiscal year to €300 million, and expects net revenues of €1.9 billion for the 12 months.

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