Ubisoft Offers Discounted Stock To Employees (2024)

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by Mike Futter on Jul 01, 2016 at 06:54 AM

Ubisoft Offers Discounted Stock To Employees (2)

Ubisoft is currently in a battle for its independence. French company Vivendi has been slowly purchasing more of the publisher’s stock, increasing its control in hopes of securing a board of directors seat this fall.

In order to protect itself from hostile takeover, Ubisoft has a few different options at its disposal. We’ve covered many of them in our extensive explainer on the ongoing situation.

Recently, the Assassin’s Creed publisher has invited employees to invest more in the company with an incentivized stock offer. Employees can purchase shares from the company treasury at a 15 percent discount.

The company will match their purchases one-to-one up to €1,000. Employees can invest up to 25 percent of their gross annual salary. The shares on offer are capped at three percent of the company’s capital as of April 19.

Of note, the shares and their respective voting rights will be held and exercised by the supervisory board of the mutual fund through which they are purchased. This will last for a period of five years, called a "lock-up period," during which time the shares may not be traded or sold. In other words, as more employees buy in for financial purposes, corporate leadership will increase its hold on their votes.

At the end of the five years, the employees can cash out or transfer funds to another Ubisoft mutual fund. All shares in the mutual fund will be sold at that time.

"Our intention with these programs is to give employees an opportunity to be more closely linked to our development and future performance," an Ubisoft representative told us. "With employees representing a bigger share of our capital they will have a bigger say in decisions taken by the company and will be even more invested in the company’s long term success."

While the initial offer was for non-U.S. qualifying employees, Ubisoft today announced a similar program for those in the States. There are some differences, particularly in the amount that staff can invest. Here in the U.S., the limit is decidedly lower at 2.5 percent of annual gross salary. Both plans draw from the same pool amounting to three percent of Ubisoft shares.

Our Take
This tactic not only allows Ubisoft’s executive body to grow its control, but it galvanizes staff. Given the publisher’s success, it’s unlikely that many employees would want to see the company taken over by Vivendi. The discounted shares and five-year return on principal and company match (as well as interest) make this a good deal for everyone involved.

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Ubisoft Offers Discounted Stock To Employees (2024)

FAQs

Why are Ubisoft shares so low? ›

In the financial year ending in March 2023, Ubisoft previously posted a record loss, due to a sharp drop in sales caused by the end of a COVID-19 related boom. The company's share price decline was worsened by a series of delays and game cancellations that saw it lose EUR500. 2 million last year.

Why did Ubisoft stock drop? ›

They have canceled multiple games. They are having major budget cuts.

Do Ubisoft people need to get comfortable not owning games? ›

An executive at Assassin's Creed maker Ubisoft has said gamers will need to get “comfortable” not owning their games before video game subscriptions truly take off.

What is the Ubisoft Code of Ethics? ›

The safety of our players, partners and employees is our highest priority. Ubisoft does not tolerate threats, sexual or moral harassment, discrimination, endangerment of others, stalking, doxing or any other illegal or illicit conduct in our communities.

Is Ubisoft in debt? ›

Total debt on the balance sheet as of September 2023 : $2.62 B. According to Ubisoft's latest financial reports the company's total debt is $2.62 B.

Who owns most of Ubisoft stock? ›

According to the latest TipRanks data, approximately 30.20% of UBISOFT Entertainment (GB:0NVL) stock is held by retail investors. Who owns the most shares of UBISOFT Entertainment (GB:0NVL)? AQR Funds owns the most shares of UBISOFT Entertainment (GB:0NVL).

Is Ubisoft in financial trouble? ›

UbiSoft Entertainment's odds of distress is under 36% at this time. It has slight probability of undergoing some form of financial hardship in the near future. Probability of bankruptcy shows the probability of financial torment over the next two years of operations under current economic and market conditions.

How is Ubisoft doing financially? ›

Ubisoft confirmed its financial targets for the full year of strong sales growth and non-IFRS operating income of approximately 400 million euros. It also sees fourth-quarter net bookings "sharply up" and on track to deliver an annual record.

Do Ubisoft employees get free games? ›

We also provide special rates in gyms and other services. That's not all! Take a look at other benefits that we have in store for you: Access to the Uplay catalogue for free PC games and great discounts on console games. Nespresso coffee, organic fruit and other beverages at the office.

What game makes Ubisoft the most money? ›

According to 2023 data from Ubisoft, Assassin's Creed was the company's most popular video game franchise with over 155 million unit sales and 155 million unique players.

Is it good to work in Ubisoft? ›

Is Ubisoft a good company to work for? Ubisoft has an overall rating of 3.7 out of 5, based on over 5,129 reviews left anonymously by employees. 73% of employees would recommend working at Ubisoft to a friend and 47% have a positive outlook for the business. This rating has decreased by 2% over the last 12 months.

What is the Ubisoft Assassin's Creed scandal? ›

Ashraf Ismail, the former creative director for Assassin's Creed Valhalla, has been fired by Ubisoft, Bloomberg reports. Ismail stepped down from his role and took a leave of absence in June after a fan accused Ismail of lying about his marital status in order to pursue a romantic relationship with her.

What are the core values of Ubisoft? ›

At Ubisoft, we create worlds for everyone. We are dedicated to enriching the lives of our players by developing high-quality games that resonate with all kinds of personalities, bring people together, and allow everyone to learn and grow while having fun.

What are the rules of Ubisoft? ›

Illegal behaviour

Ubisoft does not tolerate threats, sexual or moral harassment, discrimination, endangerment of others, stalking, doxing or any other illegal or illicit conduct in our communities. Educate yourself and respect local laws. Report any illegal or suspicious activity that you see.

Will Ubisoft stocks go up? ›

0NVL Stock Forecast FAQ

UBISOFT Entertainment has 37.43% upside potential, based on the analysts' average price target.

What has happened to Ubisoft? ›

In July 2022, Ubisoft announced that it had cancelled Splinter Cell VR and Ghost Recon Frontline, along with two other unannounced titles. In September, Tencent invested another €300 million into Guillemot Brothers Limited, the company that holds part of the Guillemots' ownership of Ubisoft.

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