Reports suggest that Ubisoft is interested in acquiring Arkane Lyon from Xbox

Speculation has emerged that Ubisoft may purchase Arkane Lyon, as negotiations have been prolonged with Xbox, according to a new report.

Sources who spoke with Bloomberg noted that Ubisoft is amid discussions with two other companies aiming to acquire the studio.

Amid these talks, Ubisoft is shifting its internal structure, forming six "Creative Houses" as part of its ongoing reorganization.

The timeline for consultation for Arkane Lyon has now been extended to December to accommodate ongoing work on Marvel's Blade. The studio's potential takeover might occur under various business arrangements.

Additionally, suggestions arose that Xbox might sell Arkane Lyon to the studio's own leadership, taking a similar approach as with past situations involving Double Fine Productions and Compulsion Games.

These developers regained rights to their intellectual property and publishing following their independence. However, Double Fine had to reduce its workforce by 23 positions after breaking from Xbox.

Bloomberg's sources revealed that although proposals have been made, no consensus has been reached with Xbox. The spokesperson of Xbox acknowledged that options are being evaluated as the December cutoff approaches but refrained from further elaboration.

Previously, Xbox voiced its commitment to maintaining transparency with the studios' workers and advisory councils and remains keen on finding a partner to aid the project's upcoming phase.

Arkane Lyon was among the five studios divested following CEO Asha Sharma’s restructuring efforts, leading to significant layoffs impacting 3,200 jobs.

The management buyouts at Double Fine and Compulsion Games bear resemblance to Xbox’s earlier dealings that also included Undead Labs.

Meanwhile, after two attempts to divest, Xbox considered winding down Ninja Theory, resulting in the start of layoffs last month.