Ubisoft hasn’t been in such a situation for years. Publisher’s decisions and global politics turmoil push stock price to unseen lows

Yesterday, a Ubisoft share was valued at just 9 euros, marking a new low not seen since April 2013, on both the London and Paris stock exchanges. This indicates that the release of Assassin’s Creed: Shadows wasn’t sufficient to boost the company’s stock market ratings.

Certainly, it wouldn’t be fair to fault “Assassin’s Creed: Shadows” for that. While the game’s launch was deemed successful by the publisher, it’s important to note that one game, no matter how popular, doesn’t necessarily alter the perspectives of investors who don’t believe Ubisoft can generate substantial revenue growth in the near future.

For a while now, this situation has led to decreased ratings for the publishers, with a significant drop of 62% observed since April 2024. The main reason behind the dismal valuation reported yesterday can be attributed to two substantial factors.

  1. First, on Monday, almost all stock exchanges in the world recorded huge drops in response to massive tariffs imposed by the USA. The London Stock Exchange lost 4.4% in value yesterday, and the Paris one – 4.8%.
  2. Second, in the case of Ubisoft, the valuation is further weakened by uncertainty related to structural changes.

A week has passed since it was disclosed that a new company is being formed, with the prized franchises such as Far Cry, Assassin’s Creed, and Rainbow Six from Ubisoft set to be relocated there.

  1. For the company’s CEO, Yves Guillemot, this is a very beneficial move. Despite Tencent’s large investment, he will retain control over the new entity, which is valued at 4.64 billion euros—an amount four times higher than the current valuation of Ubisoft itself.
  2. Some shareholders are not in favor of this transaction, preferring Tencent to just acquire the publisher’s assets, allowing them to receive a dividend (based on the valuation of shares from their historically high levels, which seems rather unrealistic).

For now, with the current unclear circumstances, investing in Ubisoft stocks feels more like taking a risk or gambling, which doesn’t appeal to many people.

https://youtube.com/watch?v=-57170

On March 20th of this year, “Assassin’s Creed: Shadows” was launched for PC, Xbox Series X/S, and PlayStation 5. Within a week of its debut, it drew over 3 million players. At precisely 7:00 am PT today, the game is set to receive its first significant update.

  1. Assassin’s Creed: Shadows on Steam
  2. Assassin’s Creed: Shadows Review: Great combat and stealth, where plot plays it too safe
  3. Assassin’s Creed: Shadows – guide

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2025-04-08 15:02