Ubisoft’s Nepotism Nightmare: CEO Hands Reins to Son Amid Outrage and Financial Woes!

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I’ve been vocal about an action that some are labeling as bold nepotism and causing quite a stir within the gaming community. Yves Guillemot, who has been associated with Ubisoft during its tumultuous period, has taken the step of appointing his son, Charlie Guillemot, as co-CEO of a newly established subsidiary that oversees our most prized intellectual properties.

On July 16, 2025, amid Ubisoft’s financial struggles, control over blockbuster series such as Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six was transferred to Charlie. This decision was made despite Charlie’s past history of unsuccessful projects in the turbulent NFT sector.

In the midst of rumors about the Guillemot family’s tight control over a troubled company, this appointment has sparked allegations of preferential treatment, as some users have criticized it as an example of nepotism or undeserved advantage in an industry still recovering from Ubisoft’s self-inflicted problems.

Or, more casually:
With talk of the Guillemot family running a sinking ship, this appointment has led to claims that it’s all about who you know rather than what you can do, with some users calling it nepotism at its worst in an industry still dealing with Ubisoft’s self-made mess.

In a move to quell nepotism allegations, Charlie Guillemot has taken on the role of co-CEO in Ubisoft’s freshly established Tencent-backed affiliate, where he highlights his extensive background and articulates a forward-looking strategy for the company’s growth.

He aims to innovate and adapt to industry changes alongside co-CEO Christophe Derennes.

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— playswave 🎮 🌊 (@playswave_com) July 17, 2025

In a casual and straightforward manner, let me rephrase that statement for you: Charlie Guillemot, who will be working in tandem with Ubisoft’s North American managing director Christophe Derennes, dismissed any concerns about nepotism within Ubisoft by saying: “What truly matters now isn’t my family name; it’s the tasks and work that lie ahead.

The critique was met with skepticism, with one Reddit user commenting, “That’s what all inexperienced heirs say,” as discontent grew regarding the Guillemot clan’s apparent unwillingness to relinquish control, despite overseeing a string of failures, delays, and significant financial losses.

Charlie’s professional background seems rather questionable. Previously, he oversaw Ubisoft’s mobile studio Owlient, but in 2023, he abruptly left to co-found Unagi, a Parisian Web3 gaming company that’s jumping on the bandwagon of NFT and AI trends.

Supported by Binance, Unagi promoted anime characters, blockchain games, and fantasy sports platforms, but ultimately failed during the collapse of the NFT market in 2025, leading to his embarrassing return to Ubisoft’s transformation team. However, giving him control over a €4 billion subsidiary despite layoffs and faltering beloved IPs under Ubisoft’s management feels like a harsh insult to both employees and fans.

The Tencent Deal: Desperation Wrapped in a Bow

The underlying move of favoritism originates from Ubisoft’s contentious agreement with the Chinese conglomerate Tencent, revealed on March 27, 2025, which was a desperate attempt to prevent their downfall.

As a passionate cinephile, I’m thrilled to share that I’m investing a whopping €1.16 billion ($1.25 billion) for a 25% stake in the subsidiary of the renowned French video game company, Ubisoft. This partnership gives me exclusive global rights to distribute their top-grossing games worldwide, while Ubisoft maintains the majority ownership. It’s an exciting venture that promises to bring some of my favorite games to even more players around the globe!

The agreement, due to be finalized by the end of the year subject to necessary approvals, is positioned as a means to expedite change and reduce debt, given the challenging financial situation characterized by declining revenues and title-related issues. This scenario presents itself as a fiscal catastrophe.

However, critics view it as a fire sale of assets, where Tencent permanently acquires royalty streams from the publisher’s beloved franchises, which are essentially their life sources.

Or:

Critics argue that this is actually a fire sale of assets, with Tencent gaining perpetual rights to collect royalties from the publisher’s key franchises, which are like the lifeblood of the business.

Ubisoft’s corporate worth remains disappointingly low at around 3.1 billion euros, which is less than their own subsidiary’s value, suggesting poor leadership from the Guillemots that has led to a significant drop in the company’s stock by over 20%, following their recent announcement.

On platform X, the agreement is criticized as evidence of financial instability. Users often compare it unfavorably to failures such as Assassin’s Creed Shadows.

Investor Fury: Calls for Overhaul and Outright Sale

Shareholders are outraged, writing open letters and taking legal action, calling for negotiations or the complete sale of intellectual property to Tencent for at least €15 per share.

AJ Investments critiques these terms as being underpriced and unclear, asserting that they divide the company and disadvantage current shareholders.

Layoffs Rage On: Human Toll of Guillemot’s Legacy

Even with Tencent’s cash looming, the Guillemots’ cost-cutting bloodbath continues unabated.

On July 9, 2025, Ubisoft made significant cuts to 19 positions at Red Storm Entertainment, the team responsible for creating ‘Tom Clancy’s Ghost Recon’ and ‘Star Trek: Bridge Crew’, as a part of planned organizational changes.

Since last September, this adds to the cumulative total of more than 3,000 job cuts. By the fiscal year 2025-26, it is projected that the company aims to reduce its fixed costs by €200 million.

This brings the total number of layoffs since last September to over 3,000. The company plans to save €200 million in fixed costs by the fiscal year 2025-26.

Moving forward, Ubisoft seems to be heading towards decline, and the appointment of Charlie Guillemot, who emerged from the ruins of the NFT fiasco, symbolizes many of the issues at hand: nepotism over talent, allegiance to family ties over professional competence.

Will the connection provided by Tencent hold firm amidst the pressure, or break due to criticism? As spirit is dampened and conflicts escalate, could the fragile remnants of the Guillemots’ lineage be on the verge of disintegration?

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2025-07-17 20:58