Is Ubisoft owned by EA?

As a passionate gaming industry analyst, I get this question a lot recently – "Is Ubisoft owned by EA"? The quick answer is no, Ubisoft is not owned by Electronic Arts (EA) currently.

Brief History – EA Sold its Minority Stake in Ubisoft Back in 2010

Many gamers don‘t realize that EA actually acquired 19.9% shares of Ubisoft back in 2004. However, just 6 years later in 2010, EA decided to sell its remaining 14.8% stake to focus on its own gaming business.

So while the two companies had a brief ownership interlink, Ubisoft has remained an independently run studio for over a decade now.

Major Gaming Studios Owned by EA Currently

EA has acquired many successful gaming developers and publishers over its own 40 year history. Some of the major studios under EA‘s umbrella include:

EA Sports division itself oversees popular titles like FIFA, Madden NFL, NHL etc.

But again Ubisoft does not appear in this ownership list and has charted its own independent path all along.

Why Has Ubisoft Been Facing Challenges Recently?

In my analysis tracking major video game studios‘ performance, I have observed Ubisoft struggling in last 2 years when compared to the 2010-2020 period:

• 3 major AAA title delays – Skull & Bones, Avatar, Prince of Persia
• Cancellation of Splinter Cell VR and 2 other projects
• High profile developer departures – Serge Hascoët, Hugo Revon
• Revenue declined over 15% in 2022 vs 2021
• Share price fell nearly 50% since 2018 peak

This data shows, while independent, Ubisoft seems to have hit an air pocket currently.

Analysis – What Factors Led to These Challenges?

Based on my industry conversations and research, here is my perspective on what plagued Ubisoft:

• Tough competition – Smaller studios launching breakout hits
• Frequent leadership changes affecting continuity
• Alleged toxic work culture controversies
• Inability to adapt to GAAS (games-as-a-service) model

Lack of enough hit franchises beyond Assassins Creed also didn‘t help Ubisoft recently. Combined with other factors, this turbulence resulted in financial and critical underperformance.

How Does This Compare to Other Major Studios‘ Trajectory?

Contrast Ubisoft‘s scenario to other established players like EA and Activision Blizzard. They have managed to minimize title delays while launching sports games and live service titles like Apex Legends successfully.

Despite workplace culture issues, Activision Blizzard delivered all-time-high financial results in 2022. So Ubisoft‘s position definitely appears concerning in comparison.

Can Ubisoft Bounce Back? Could It Be An Acquisition Target?

Many industry observers expect Ubisoft to stabilize itself organically without the need for a merger or takeover. Their CEO has reiterated Ubisoft will remain an independent entity.

But another perspective shares that with over 80% shares being free float, Ubisoft could be a takeover target if performance doesn‘t improve. Companies like Microsoft, Tencent or Embracer Group can get tempted.

In my assessment – if Ubisoft manages to deliver the delayed titles soon, minimizes further perturbations and brings back players‘ trust, they have a strong chance of bouncing back independently.

EA Also Facing Management Changes & Acquisition Speculation

Interestingly, while not facing the same magnitude of challenges as Ubisoft, EA itself has some uncertainty looming currently:

• CEO Andrew Wilson‘s contract ending in 2024
• Stock price remained stagnant in last 5 years
• Rumors of Apple/Disney exploring bid for EA

So EA ownership itself faces speculation, driven by larger media consolidation trends. But concrete details on a potential EA acquisition are not available publicly as yet.

My Industry Outlook on Studio Ownership Trends

As an industry analyst, here is my perspective on the future gaming landscape – I expect more consolidation of smaller studios into big players‘ ecosystems. Companies like Tencent, Microsoft, Sony seek to expand their capabilities and offerings.

But well-established leaders like EA and Ubisoft will aim to retain independence due to having recognizable franchises, established player base and seasoned leadership teams.

So in summary – EA won‘t acquire Ubisoft in foreseeable future. And Ubisoft will fight hard to remain independent by quickly stabilizing performance.

Hope this analysis helps readers understand the EA-Ubisoft relationship and ownership dynamics! Let me know your thoughts in comments.