Ubisoft CEO: Microsoft’s Acquisition of Activision Blizzard Supports Our Strategy
Ubisoft CEO Yves Guillemot believes that Microsoft’s bid to acquire Activision Blizzard is a positive sign for Ubisoft’s current business strategy. While many have viewed the merger as Microsoft’s attempt to purchase Call of Duty, Xbox boss Phil Spencer has consistently emphasized that the $69 billion deal is primarily driven by their mobile gaming ambitions.
Activision Blizzard is home to some of the biggest brands in gaming, as well as leading live service and PC games. These are all areas that Microsoft hopes to strengthen its foothold in, similar to Ubisoft’s own goals.
During Ubisoft’s recent earnings call, Guillemot was asked about the impact of the Activision deal on future mergers and acquisitions in the industry, as well as Ubisoft’s stance on remaining independent in a consolidating industry.
Guillemot replied, “It’s good news that the transaction can go through because it demonstrates the power of IPs and where the industry is heading. This opens up opportunities for all companies in the future. It also highlights the value of IPs that can span across console, PC, and mobile platforms, becoming truly worldwide brands. Microsoft’s emphasis on the mobile part of the Activision deal aligns with our own investments in mobile, so all these factors contribute to the growth of our company’s value.”
In January, Ubisoft announced the cancellation of three unannounced games in order to focus on its biggest IPs and live services. The company recognized the shift in the industry towards mega-brands and long-lasting titles that can reach players across platforms and business models. Ubisoft has spent the last four years adapting its major brands, such as Assassin’s Creed, Far Cry, Ghost Recon, Rainbow Six, and The Division, to these evolving trends.
On the mobile front, Ubisoft has plans to release free-to-play games Rainbow Six Mobile and The Division Resurgence during the current fiscal year, ending in March 2024. Additionally, two mobile Assassin’s Creed games are in development. There is also a mysterious collaboration with Netflix that may tie into Ubisoft’s upcoming live-action series, along with the closed beta testing of Codename Jade, a free-to-play game set in China, next month.
Rumors of takeover interest from private equity firms surfaced in April 2022. The following month, it was reported that Ubisoft’s founders’ holding company, Guillemot Brothers Limited, was considering teaming up with a private equity firm to acquire the company. However, Guillemot reiterated Ubisoft’s position in staying independent, emphasizing their talent, scale, and portfolio of powerful IPs that will create significant value in the years to come.
