Analytic Dreamz: Notorious Mass Effect - "UBISOFT SHARES FALL 17% AFTER IT DELAYS LAUNCH OF NEW 'ASSASSIN'S CREED GAME"

Episode Date: December 11, 2024

Linktree: https://linktr.ee/AnalyticJoin Analytic Dreamz on the Notorious Mass Effect podcast for an in-depth analysis of Ubisoft's potential shift towards privatization. In this segment, Analytic Dreamz explores the recent discussions involving the Guillemot family and Tencent, aiming to understand what this could mean for Ubisoft's future.Key Points on Ubisoft’s Privatization Consideration:Potential Privatization Discussion: The Guillemot family, founders of Ubisoft, alongside Tencent, a significant shareholder, are contemplating a move to take Ubisoft private following a year marked by financial downturns and unsuccessful game releases. The news of these talks saw Ubisoft's shares drop by 54% earlier in the year, but they experienced a notable 26.33% increase post-announcement.Market Reaction: After Bloomberg reported this potential privatization on October 4, 2024, Ubisoft's stock price soared by over 31%, hitting €14 ($15.35). This jump reflects investor confidence in the stability that privatization might bring. Previously, the stock had plummeted to €9.76 ($10.70), marking its lowest since 2013.Financial Struggles and Strategic Adjustments: Ubisoft has faced setbacks with games like Star Wars Outlaws and the delay of Assassin’s Creed Shadows to early 2025, impacting its share value. The company is now focusing on enhancing its strategy in Open World Adventures and Games as a Service (GaaS), while also deciding to end its exclusivity with Epic Games Store in favor of direct launches on Steam to boost sales.Shareholder Concerns and Influence: With activist shareholder AJ Investments pushing for a sale and claiming support from about 10% of shareholders, pressure is mounting on Ubisoft's management. Meanwhile, Tencent's substantial 9.2% voting rights and the Guillemot family’s 20.5% ownership give them considerable influence over the company's direction.Background and Industry Context: Ubisoft's market value has decreased by over 51% in the last year, currently sitting at around $1.5 billion. Although private equity interest from firms like Blackstone and KKR has been noted, no acquisition has come to fruition. A move to privatization could herald major operational changes under the guidance of Tencent and the Guillemot Brothers.Current Status: While discussions are still in their infancy, Ubisoft remains focused on strategic reviews and strengthening its core operations. No final decisions have been made public, keeping the gaming community and investors in suspense for further developments.Tune in to this segment of Notorious Mass Effect with Analytic Dreamz for a comprehensive breakdown of these pivotal changes in the gaming industry.Privacy & Opt-Out: https://redcircle.com/privacy

Boy, oh boy is Ubisoft in trouble. Now, the reason why I'm saying this is because not only did they finally announce a Assassin-Kree game in Japan, but the amount of controversy that arose because of it and their response to it, or lack less of a quick response is why we're in a situation today. Because of course, this has happened time and time and time again to the point where Ubisoft shares have fell by 54%. So with that being said, the, I don't even know I say this, GouliMont, the Goulmont family, Ubisoft's founders, and Tinsent of

key shareholder are reportedly exploring options to take Ubisoft private after recent financial struggles and game flops so what games have been flopping that's probably the question you're asking yourself because obviously not this game the Assassin Creed shadows have not came out yet which I've already reported on if you look up Assassin Creed shadows analytic dreams it should pop up but I've already talked about that game extensively and the problems that arose because of it and also analytic dreams video on Spotify to see the video along with the audio because I'm currently playing upper echelons video about Ubisoft being a dying company now of course I like the

background so that's why I'm using it but as far as the actual content in this video is very worth checking out but anyways Bloomberg's report on October 4th 2024 said that Ubisoft stock surged over 31%. And that was the potential for stability through the private tisatization appeal to investors. So because of this being a fact, a lot of people was like, well, let's just go private. So the Goulmont family, Tencent, a key shareholder, is reportedly trying to explore a way to make Ubisoft's private. because of how it would bring the stock back up 31%. Because like I just said, Ubisoft's shares have fell 54%.

And the stock had previously hit a low of $10, its lowest since 2013. So ladies and gentlemen, this is a pretty big deal. Ubisoft has currently some IP that makes it flabbergasting. and as far as how in the world could they mess it up, right? I mean, the first open world Star Wars game just automatically sounds like a monumental hit, right? Well, of course not. Assassin Creed game set in Japan

automatically sounds like a hit, right? Well, horror returns came back for Star Wars outlaws. And then, of course, Assassin Creed's shadows has been delayed to early 2025 because of not only the drop and share value, but because of the controversy surrounding one of the characters. And also, to be fair, some of the historical inaccuracies that they've publicly admitted that they was just overlooking or they just didn't catch it, right? So all of that made them push the game back because, of course, they don't want to

make this be a flop because if Star Wars, the first open world Star Wars game ever, like of all time, if that flops, then no title is safe. I don't care if it is Assassin Creed in Japan because that's what people been wanting from the Assassin Creed's franchise. And shout out to Ghost of Tashima actually pushing Ubisoft to give us this type of product because if not, the world would have just never knew that people wanted Assassin Creed in Japan. they would have not have known the popularity of wanting

Assassin Creed in Japan was so high because when Ghost of Tashima came out everybody was looking at Ubisoft like hey see tapping them on a show to like hey then we tell you look now Ghost of Tashima's game of the year and now you're following in their footsteps and safe to say probably won't be able to live up to the hype of

and the quality of Ghost of Tashima because I don't want to just assume that Shadows is going to be a bad game game but it's definitely not going to live up to the hype of goes to tishima bay i'm open to wrong right i just i'm pretty confident in saying that the ghost of tishima would end up being the best assassin game in japan right so anyways now now that is ubysoft's turn up uh in the up to bat as far as this release they have basically delayed the game because they know that they can't miss with this one they've been missing time and time and time again to the point where now

they're reviewing the strategy execution as far as marketing strategies and the focusing on core areas like open world adventures and games as a service to boost performance now everybody knows that fortnight started a pandemic when it comes to live service games everybody thinks they are epic games in a way that they are going to put out a live service game and people are going to play that for five to 10 years but what people are horrendously getting wrong is that the The game they're making is not as fun as far as the gameplay loop like a Fortnite. So with that being said, another thing I wanted to get into was essentially the shareholder's concerns because of course, Activision is a shareholder and they hold 1% of Ubisoft shares calling

and they called for itself. So not only is Tencent, not only is the founding members of Ubisoft calling for Ubisoft to go private but Activision came out and basically they are saying that Ubisoft should go private so now most of your key shareholders are coming out talking about you going private for the simple fact that Bloomberg reported that the stock the stock will surge over 31% if they privatize if they stabilize their company through privatization That's a tongue twist. I ain't going to lie.

I was having trouble with that. We had to sound it out. But anyways, so that appealed to a lot of its investors. So now they're telling them to go private. So with that being said, now they are in the early talks of going private. But Ubisoft is still being committed to putting out Assassin Creed shadows. Now, whether, on other hand, whether they will go private or stay open or stay public has not been confirmed. But of course, I wanted to report on this because this is a very interesting story, if I do say so myself.

A company that has the first ever Star Wars Open World game and an assassin game coming out in Japan that people been asking for, clamoring for, very hyped for, and you seemingly are dropping your perceived value to the point where it's been the lowest since 2013. I mean, what is going on with Ubisoft? Like, it is a real sticky situation that Ubisoft has found itself in. So, of course, other than that, Ubisoft has also acknowledged

that the underwhelming launch and announced plans of the game is why they push back Assassin Creed Shadows. They talked about underperforming in their earnings call, basically citing how Star Wars Outlaws

was a softer launch than they would have hoped, right? So that's basically code for Star Wars flop. Outlaws flop, and we don't know how in the world RIP, not R, but we don't know how in the world, the first ever open world Star Wars game that we had in our possession and we put out just ultimately flop.

Even that would flabbergast me. That would leave me befuddled. I'm like, that's just a layup. That's kind of the same as Disney, what they're doing with Star Wars and Marvel. Like, how do you mess up so much classic material to the point where nobody checks it out? So that's unfortunate.

That is very unfortunate. So anyways, I don't want to beat a dead horse. Y'all get what I'm saying about Ubisoft. There's a lot of games that's not meeting their financial goals. And so now Ubisoft is actively working on enhancing their marketing strategies who are also making sure that Assassin-Kree shadows will end up being a success out the gate because obviously, you know, some of the games that they thought was going to be a hit like Star Wars outlaws, like I keep saying, is just, I don't, it's just, it's so

confusing how it could be such a flop, right? Because the game is not like completely garbage, but I guess a lot of people are not inspired to play the game. That could be, there could be other reasons that's more of a deeper conversation. But in general, let's just say the choices Ubisoft has had for protagonists for these popular games in light of flop after flop after flop to be fair or to be to put the medicine with the candy basically. They've been a little experimental when they need a bona fide hit, right? Let's just put it like that. So anyways, Ubisoft, hopefully I'll figure it out because I'm not going to lie. I was looking forward to Assassin Creed Shadows.

That was actually on my list of purchase. I was actually going to play Outlaws as well, and then Astrobot came out. So, you know, hey, that's why it pays to put out great quality because then it just overtakes everything else as far as it overtakes everything else as far as what gamers want to play. Because at the end of the day, we just want a great product. And obviously, Ubisoft with skull and bones, with Star Wars Outlaws with, it was some other game, I forget. But anyways, it's just underwhelming performances

from a quality aspect and now, from an overall sales aspect that we never would have thought that Ubisoft would be facing. So in light of Ubisoft facing poor returns, click my link to your in my bio, let me know in one of my social medias. what do you think about Ubisoft's position as far as them

having the lowest stock since 2013 and do you think that they could ultimately make a resurgence or should they just privatize what's that word again that was messing up let's see if I can find again or should they have a privatization to basically

stabilize the company.