Tencent and Guillemot Family Consider Potential Buyout of Ubisoft

According to Reuters, Tencent Holdings and the founding family of Ubisoft Entertainment, the Guillemots, are in talks regarding potential strategies that may lead to a buyout of the renowned video game developer. Bloomberg News reported on Friday that discussions have included hiring advisors to enhance Ubisoft’s market value and stabilize the company amid ongoing financial struggles.

Following the news of these talks, Ubisoft’s shares surged nearly 30%, lifting the company’s market value to approximately 1.39 billion euros ($1.52 billion) at Thursday’s close. Reports suggest that one of the possibilities being considered is taking the French gaming company private, a significant move that could reshape its corporate structure.

Despite this optimistic surge in share prices, Ubisoft has faced a challenging year, with its stock value more than halving as several recent game releases did not meet market expectations. The company recently announced a three-month delay for the upcoming title “Assassin’s Creed Shadows” and lowered its net bookings forecast. This string of disappointments has raised concerns about Ubisoft’s direction and operational efficiency.

In a separate development, a Reuters exclusive highlighted that AJ Investments, based in Slovakia, has garnered support from 10% of Ubisoft shareholders in a bid to either take the company private, sell it to an outside party, or instigate a change in upper management.

Currently, Ubisoft is still under the leadership of the Guillemot family, which holds a 15% stake in the firm, while Tencent has just under 10%, according to data from LSEG. Both Tencent and the Guillemot family have not responded to requests for comments from Reuters, and Ubisoft itself declined to provide any official statements regarding the ongoing discussions.

Source: Bloomberg