Ubisoft's future in jeopardy amid financial turmoil
Ubisoft, a renowned game developer, is facing the threat of bankruptcy. Financial and operational problems, including a decline in stock value and unsuccessful releases, are jeopardizing the company's future. Net debt has risen to CAD 2.1 billion, and cash reserves have fallen to CAD 1.4 billion, reports thatparkplace.com.
The French company Ubisoft is grappling with severe financial challenges. The company's net debt has escalated to CAD 2.1 billion, while cash reserves have dwindled to CAD 1.4 billion. The stock value has plummeted by 80% over the past five years, causing concern among investors.
A major issue is the unsatisfactory game releases, such as "Star Wars Outlaws," which failed to meet sales expectations. In response, Ubisoft decided to release the game on Steam, which can be seen as a desperate measure. Furthermore, operational costs for employing over 18,600 employees amount to nearly CAD 1.15 billion.
They released hits
Ubisoft, known for titles like "Splinter Cell" and "Assassin's Creed," is in a financial crisis. "In the past five years, the company's shares have lost about 80% of their value and are now priced at just CAD 18,50. This is one of the lowest points in the company's history, and investor confidence in Ubisoft's ability to recover deteriorates each quarter," adds ithardware.pl.
Ubisoft is attempting to rectify the situation by delaying releases and implementing fixes to games, as seen with "Assassin’s Creed Shadows." However, analysts remain skeptical of the company’s ability to manage its debts. Rumours are circulating about a possible takeover by Tencent, which could signify an end for Ubisoft. Tencent is an international corporation based in China.
