Ubisoftis seeking an acquisition by a third party, states industry insider Jeff Grubb.

Gaming Bible reports that, despite being responsible for some of the biggest names in gaming such as Far Cry, Assassin’s Creed, and Watch Dogs, the company is hoping that a new parent company will help the company weather its recent downturn.

2022 saw the company struggle financially, with their biggest release, Mario + Rabbids Spark of Hope, failing to make a major impact. The company is facing a yearly loss of over $500 million, which has led to the cancellation of three unannounced games and yet another delay for the much anticipated Skull and Bones.

“Ubisoft definitely already did the rounds proposing acquisitions and mergers with other similar companies, and it mostly got laughed at. It's just too unwieldy. Its strength was its distributed development structure, and now that is an albatross,” wrote Grubb on Twitter.

“I hope it tries to ride it out because I think it might hold onto more people than if it tried to "slim down" for an M&A. Either way, though, it seems grim. Making games is a rough business.”

An uncertain future

Despite the recent turbulence the company has faced, it’s worth noting that not all is lost for Ubisoft. The company has two big releases, Assassin’s Creed Mirage and Avatar: Frontiers of Pandora, scheduled for release in 2023, and the company is no doubt hoping that these games can help alleviate the loss.

Of course, with the company reportedly seeking a new parent company, one name comes to mind as an obvious prospect: Tencent, which acquired a 49.9 percent stake in parent company Guillemot Bros for $300 million in September, with plans to develop mobile titles based on Ubisoft franchises and bring some of the company’s titles to China. Given that Tencent has already displayed strong interest in Ubisoft’s portfolio, it’s therefore possible that it could acquire the company as it continues its expansion overseas.

We listed Tencent as one of the top 50 mobile game makers of 2022.