Ubisoft Investors Grill CEO, CFO on Potential Tencent Sale, Delays, and Financial Woes

ign.com:

Ubisoft just delayed Assassin's Creed: Shadows by another month, amid a time of troubled financials, continued cost cuts, and ongoing rumors the company was preparing for a sale to gaming giant Tencent. In an emergency conference call today, investors grilled CEO Yves Guillemot and CFO Frederick Duguet for answers on all of the above - but their responses didn't provide much reassurance.

Ubisoft's call today came alongside not just the delay announcement, but a seeming confirmation of sorts that Ubisoft is preparing to sell, or at least strongly considering it. Per the press release, the company has "appointed leading advisors to review and pursue various transformational strategic and capitalistic options to extract the best value for stakeholders. This process will be overseen by the independent members of the Board of Directors. Ubisoft will inform the market in accordance with applicable regulations if and once a transaction materializes."

Back in October, Bloomberg reported that Ubisoft's founding Guillemot family and shareholder Tencent were in discussions to take the company private following a number of high-profile flops, game cancellations, and the collapse of the company's share price. At the time, the talks were merely exploratory, and Ubisoft told IGN it would "inform the market if and when appropriate." Today's update seems to suggest that such talks, either with Tencent or in some other capacity, have moved forward in some way.

But it's unclear exactly how, and Ubisoft's shareholders understandably wanted more details during the conference call today. But Guillemot and Duguet weren't biting. First, they were asked directly by a Morgan Stanley representative: "On the various transformation strategic and capitalistic options, it's a bit of a vague phrase if you don't mind me saying. Could you perhaps elaborate on the kind of things you're talking about? And perhaps particularly, there were press reports of detailed discussions with Tencent that were