Buyout Interest - Tencent Holdings Evaluates Ubisoft Amid Video Gaming Challenges
Buyout Interest in Ubisoft
Ubisoft Entertainment, publisher of popular franchises Assassin's Creed, Far Cry, and Watch Dogs, has announced that it regularly reviews its strategic options amid reports of buyout interest from Tencent Holdings. This comes after the company has lost half of its stock-market value over the past year, plagued by product delays and the lackluster performance of some key titles.
Recent Developments
- Ubisoft indicates it will inform the market of any significant changes.
- Tencent Holdings and Ubisoft's founding family, the Guillemots, hold close to 25% of the company's shares.
- Ubisoft's stock rose 6% initially on the news before reversing to a 1.8% decline.
Challenges Ahead
With major releases like Star Wars Outlaws underwhelming and the launch of Assassin's Creed Shadows delayed, Ubisoft faces significant challenges in regaining investor confidence. The company has embarked on cost-cutting measures to cope with its financial situation, hoping to revitalize its standing in the competitive video gaming industry.
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