No, Microsoft is not buying Ubisoft
Let‘s clear the air first – based on credible reports from reputable gaming and financial outlets, Microsoft currently has no deal in the works to acquire major video game publisher Ubisoft.
As an avid gamer and industry analyst, I have been closely monitoring Ubisoft‘s situation and see no solid evidence that Microsoft is looking to make a play for them at this time despite rampant speculation.
Why Would Microsoft Want Ubisoft?
It‘s understandable why some may theorize that Ubisoft would make a good target for Microsoft‘s aggressive gaming acquisition strategy.
After all, Ubisoft boasts an impressive catalog of highly recognizable gaming franchises across various genres – Assassin‘s Creed, Far Cry, Tom Clancy titles like Rainbow Six, Ghost Recon and The Division, Just Dance, Watch Dogs, and many more household names.
| Ubisoft Franchise | Total Games Sold |
|---|---|
| Assassin's Creed | 200+ million |
| Far Cry | 50+ million |
| Tom Clancy's Rainbow Six | 75+ million |
With cross-platform blockbuster brands under their belt that push tens of millions of game sales, Ubisoft could significantly expand Xbox‘s first-party portfolio. Microsoft likely sees them as a valuable way to drive more Game Pass subscriptions.
However, there are also clear challenges around integrating a publisher of this scale, with numerous complex live service games. And as we‘ll explore next, Ubisoft isn‘t necessarily in a position of strength currently to demand a lucrative buyout.
Ubisoft‘s Recent Internal Issues Hamper Its Value
Over the past few years, Ubisoft has faced no shortage of internal turmoil. Allegations of workplace misconduct in 2020 led to key executive departures. They‘ve also struggled retaining talent, with reports of top developers leaving for positions at competitors.
These problems have manifested in their release slate too. Flagship franchises like Far Cry 6 and Ghost Recon Frontline failed to meet sales expectations. And amidst delays for titles like Skull and Bones, Ubisoft has needed to lower financial projections – by $500 million this past fiscal year.
Given these challenges, and Ubisoft leadership reiterating a focus on staying independent, Microsoft may not see it as an optimal target right now when factoring in what it would cost to acquire versus inherent risks.
Tencent‘s Growing Minority Stake Muddies a Potential Microsoft Deal
Another complexity is Chinese tech conglomerate Tencent‘s growing minority stake in Ubisoft. After initially purchasing 5% of Ubisoft shares in 2018, Tencent doubled down in September 2022 by acquiring an additional stake – making them Ubisoft‘s single largest shareholder.
Ubisoft‘s CEO characterized this as a vote of confidence in their future value. But Tencent now holds enough shares that their support could make or break any takeover attempt. Microsoft could have concerns over eventually untangling partial Chinese ownership.
The Activision Blizzard Deal Remains Microsoft‘s Priority
Rather than opening new acquisition discussions with Ubisoft, Microsoft is still wholly focused on closing their pending $68.7 billion purchase of Activision Blizzard. This deal is facing intense regulatory scrutiny around anti-trust issues.
Navigating this historic transaction to completion is the priority for Xbox head Phil Spencer and team. If it fails, Microsoft would suffer a huge strategic setback and wasted costs – lessening their capability to quickly absorb another massive gaming company purchase.
Until there is more clarity whether the Activision deal ultimately gets approved over the next year, I don‘t anticipate Microsoft actively working to also acquire Ubisoft in that same timeframe. It would be too much in parallel.
Ubisoft Affirms Their Independent Stance
Lastly, we have clear messaging from Ubisoft‘s leadership about their intentions. CEO Yves Guillemot has shut down rumors of a sale, stating on investor calls that Ubisoft wishes to control its own destiny as publishers like Activision, Blizzard and Bethesda get consolidated.
Ubisoft has everything we need to remain independent. We have the talent, the industrial and the financial scale to have long-term visibility.
Unless Microsoft makes an offer so irresistible that Ubisoft changes perspectives, they seem committed to proving out their strategy focused solely on Ubisoft‘s interests rather than getting absorbed into a larger entity.
The Microsoft-Ubisoft Partnership Remains Strong
Just because an outright acquisition looks unlikely currently, that does not make Microsoft and Ubisoft competitors. The two gaming powerhouses have built meaningful partnerships over the past years.
Ubisoft has provided day-one releases of newer titles to Xbox Game Pass subscribers, helping boost the value of that catalog. Xbox accessories and console bundles regularly feature Ubisoft games like Assassin‘s Creed. And Xbox users gain perks like exclusive DLC for participating Ubisoft titles.
This collaboration benefits both sides by getting content to players on Xbox consoles. Even without an official acquisition, Microsoft can deepen those integrations, providing incentives for Ubisoft to continue aligning with Xbox strategically.
