Video Gaming Prospects: Tencent and Guillemot Family Consider Ubisoft Buyout
Exploring Buyout Options for Ubisoft in the Video Gaming Sector
Tencent Holdings and the founding Guillemot family are evaluating various options for Ubisoft Entertainment, including a potential buyout of the French video gaming firm, following a significant decline in its market value this year. Insider sources reveal that the discussions aim to stabilize Ubisoft and increase its future prospects.
Market Response and Financial Considerations
- Ubisoft’s shares surged by up to 33% in Paris on Friday, following reports of Tencent and the Guillemot family's considerations.
- Despite this, Ubisoft’s stock has dropped approximately 40% this year, leading to a market capitalization of about €1.8 billion (US$2 billion).
Tencent holds around 9.2% of Ubisoft’s net voting rights, while the Guillemot family possesses about 20.5%. Minority shareholders like AJ Investments are advocating for a sale to strategic investors or a take-private initiative to enhance shareholder value amidst the ongoing stock-price decline.
Current Situation and Future Dynamics
- Initial deliberations are in formative stages with no guarantee of a transaction.
- Tencent and the Guillemots are considering numerous alternatives.
- Ubisoft’s outlook was previously dimmed by disappointing sales forecasts and delays in high-profile game releases.
Key Private Equity Interests: Major players like Blackstone and KKR & Co considered bids for Ubisoft in 2022, influenced by a wave of consolidation in the video gaming industry. The Guillemot family’s partnership with Tencent aimed to balance controls while keeping other suitors at bay, according to analysts.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.