Record drop for Ubisoft: shares plunge 39% after restructuring announcement

Record drop for Ubisoft: shares plunge 39% after restructuring announcement
Ubisoft falls 39% on the stock market after canceling games and announcing layoffs
porEditorial Team
Argentina

The French publisher plunged 39% on the stock market after announcing cuts, cancellations and heavy losses


Ubisoft went through one of the worst financial sessions in its recent history. After announcing a deep restructuring, its shares plunged by as much as 39% in a single trading day.

The stock closed at 3.99 euros, its lowest value since 2011, and triggered every alarm in the European market for video games.

Ubisoft atravesó una de las peores jornadas financieras de su historia reciente
Ubisoft atravesó una de las peores jornadas financieras de su historia reciente

A historic drop that reflects years of deterioration

The stock market collapse exposed the cumulative decline of the French publisher in recent years. At its historic peak in July 2018, the share had reached 107.90 euros.

Even in January 2021, it was still trading near 85 euros. In just five years, Ubisoft lost around 95% of its value.

From global giant to minimal market capitalization

The company went from being worth about 11 billion euros to an approximate market capitalization of 616 million. The collapse reflects a combination of poor releases, delays, and loss of investor confidence.

Funciona con un modelo de suscripción mensual de 30 euros
Funciona con un modelo de suscripción mensual de 30 euros

The blow also comes in a delicate context after the recent minority sale to Tencent.

Total restructuring: fewer games and more cuts

Ubisoft confirmed a complete reorganization of its creative structure. From now on, development will be divided into five major units by genre.

Ubisoft insiste en que busca “respetar al jugador”
Ubisoft insiste en que busca “respetar al jugador”

According to the company, the plan aims to "regain creative leadership" and trigger a rebound after several negative fiscal years.

Canceled projects and closed studios

As part of the adjustment, six games were canceled, including the remake of Prince of Persia: The Sands of Time. Another seven titles were postponed.

The company also announced the closure of studios in Halifax (Canada) and Stockholm, along with restructurings in other countries.


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