"The first was a big injection of new cash, say from a sovereign wealth fund like Saudi Arabia's. The second was an outright sale of a major portion of the company, maybe to its current backstop investor Tencent. The third was much more mundane: an accounting error. After a week of speculation, the Assassin's Creed publisher confirmed that was indeed the reason for the delay."
"Ubisoft explained on its conference call before markets opened in France this morning that the accounting issue had to do with new auditors brought in earlier this year to review the company's books. They determined money from various business partnerships (one last year and one this year) needed to be recognized differently in the company's accounting. As Reuters reports (via ), this mattered because the new math put the publisher in breach of its "leverage covenant ratio" for various loans, i.e. too much debt and not enough money coming in."
Ubisoft delayed its earnings report minutes before release because new auditors required different recognition of revenue from two business partnerships. The accounting adjustment caused the company to breach its leverage covenant ratio on several loans by increasing reported debt relative to income. The company plans to use a recent $1.35 billion capital infusion from Tencent to pay down debt and negotiate more favorable financing terms to support strategic ambitions. Ubisoft reported stronger-than-expected performance last quarter in part due to partnerships but did not disclose specific deal details or sales figures. Possible partnership sources include TV/licensing agreements and Game Pass payments.
Read at Kotaku
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