Tencent Holdings Ltd. and the Guillemot family, founders of Ubisoft Entertainment SA, are exploring options such as a possible buyout of the French video game developer, after its market value plummeted by over 50% this year, insiders told Bloomberg.
According to sources, Tencent Holdings Ltd. and Guillemot Brothers Ltd. have been working with advisors to discuss ways to bring stability and growth to Ubisoft. It is speculated that a possible measure they could be considering is to join forces and let Ubisoft go private.
This year, Ubisoft’s shares have dropped by 54% in Paris trading, reducing the company’s market capitalization to around €1.4 billion ($1.5 billion). According to the latest annual report, Tencent held 9.2% of Ubisoft’s net voting rights as of the end of April, while the Guillemot family owned about 20.5%.
Some minority shareholders, including AJ Investments, have proposed taking Ubisoft private or selling it to a strategic buyer because of the fall in share price. These talks are preliminary and may not lead to a transaction. According to insiders, Tencent and the Guillemot family are looking at other alternatives as well.
Lately, Ubisoft has struggled to achieve anticipated success, with underwhelming sales for Star Wars Outlaws and XDefiant. Additionally, the release of Assassin’s Creed Shadows has been postponed until February 2025.
[Source]: Bloomberg: Tencent, Guillemot Family Are Said to Consider Buyout of Ubisoft – [Archives: 1; 2] – [Screenshot].
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