Buying Ubisoft Taught Me a Costly Lesson

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Keith Noonan, The Motley FoolSun, March 1, 2026 at 7:22 PM GMT+1 4 min readUbisoft (OTC: UBSFY) is a France-based video game publisher known for franchises including Assassin's Creed, Rainbow Six, and Far Cry. The company was once one of the most powerful players in the gaming industry, but it's suffered an incredible fall from grace.I purchased shares of the company in 2022 amid the backdrop of an intensifying market for video game acquisitions. Early in January of that year, Take-Two announced that it would be acquiring mobile games publisher Zynga at a substantial premium. Soon after, Microsoft announced that it was buying Activision Blizzard -- once again at a substantial premium.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Image source: Getty Images.In February 2022, Ubisoft CEO Yves Guillemot said that the company's board of directors was open to reviewing buyout offers if they arrived. In April, the company was reportedly attracting meaningful buyout interest. What happened next wound up being a disaster for shareholders.News hit in September 2022 that Chinese media conglomerate Tencent was increasing its stake in Ubisoft. The news initially prompted a significant pop for the French publisher's share price, but the devil was in the details. While initial reports stated that Tencent was investing 300 billion euros in Ubisoft, it turned out that the Chinese company was actually investing the money in a holding company for Ubisoft stock owned by Guillemot and his family.In other words, no shares of Ubisoft were actually purchased by Tencent on the open market in the transaction. Making matters worse, the deal came with additional stipulations. As part of the deal, Tencent was prevented from increasing its stake above the near-10% level it had already reached. The arrangement also gave Tencent the right of first refusal in the event that another suitor was interested in acquiring Ubisoft.The deal effectively killed any outside interest in a potential acquisition of Ubisoft from other parties, and it only got worse from there. Subsequent years saw the company's most successful franchises fail to drive growth, and most of the company's other properties continued to lose relevance.In March 2025, Ubisoft announced that it was spinning off its most successful franchises (Assassin's Creed, Far Cry, and Rainbow Six) into a new subsidiary -- Vantage Studios. Along with the news, the company also announced that Tencent had invested 1.16 billion euros to gain a 25% stake in the new business. While that investment seemingly valued Ubisoft's biggest properties, and therefore the company as a whole, at a substantial premium, it corresponded with another stretch of big sell-offs for the stock. Tencent had increased its share in Ubisoft's most valuable properties and circumvented its previous agreement not to increase its stake in the core company above 10%, and the gaming company's shares got hit hard despite a big capital injection and what looked like positive valuation news.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,878.88 -29.98 (-0.43%)Dow 3048,977.92 -521.28 (-1.05%)Nasdaq22,668.21 -210.19 (-0.92%)Russell 20002,632.36 -44.93 (-1.68%)VIX19.86 +1.23 (+6.60%)Gold5,247.90 +53.70 (+1.03%)Trending tickersBTC-USD Bitcoin USD 66,417.56 +1,157.36 (+1.77%)ETH-USD Ethereum USD 1,981.78 +75.76 (+3.97%)XRP-USD XRP USD 1.37 +0.05 (+3.43%)BTC-CAD Bitcoin CAD 90,696.83 +1,580.44 (+1.77%)SOL-USD Solana USD 84.29 +3.07 (+3.78%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)Top economic eventsEarnings eventsMy earnings eventsEarnings events