According to a report from Reuters (via Gamesindustry.biz), Tencent and the Guillemot family are among a group of investors looking into acquiring control of Ubisoft. This was after Ubisoft received substantial flak from gamers and investors. Shareholders have pushed for the company to restructure for years, but Ubisoft has not indicated it’s going to do so any time soon. As for that Antonov news, it came in the middle of reports that Tencent and Guillemot Brothers Ltd are considering their options to save the company with a potential partnership or buyout deal.
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Sources familiar with the situation informed Bloomberg that discussions have taken place with advisors regarding the potential buyout, although the talks are still in the preliminary stages, and there’s no certainty that a deal will materialize. The news comes not long after AJ Investments urged Ubisoft to go private, as the stock price saw its lowest point when Star Wars Outlaws bombed in stores. Currently, Ubisoft has a market cap of $1.5 billion at a ten-year low with stock down 54% this year alone and its director moving on completely disheartened with the sales performance of Star Wars Outlaws.
Founded by Ubisoft CEO Yves Guillemot and some of his family members, Guillemot Brothers Ltd. is a family foundation run by the founding family of Ubisoft. GBL has 20% of Ubisoft’s voting rights, with Tencent sitting at 9.2%. In 2022, Tencent increased its stake in GBL, further boosting its investment in Ubisoft. Bloomberg contacted Ubisoft, GBL, and Tencent for comment on the situation, but Ubisoft and GBL declined to respond. It did not expect a response from Tencent.
It has been a tough year for Ubisoft to say the least, with Star Wars Outlaws not performing particularly well and facing its own challenges during the launch period as XDefiant. Furthermore, Ubisoft announced the delay of Assassin’s Creed Shadows after many developers called for additional time to ensure historical accuracy and enhance the game’s quality.
FAQs
Why are Tencent and the Guillemot family interested in buying Ubisoft?
They aim to stabilize the company amid ongoing financial struggles and shareholder pressure for restructuring.
What is the current status of the buyout discussions?
Talks are in the early stages, with no guarantee of a successful acquisition of Ubisoft at this time.
