Ubisoft's Video Gaming Future in Question as Buyout Talks Emerge

Saturday, 5 October 2024, 03:42

Video gaming company Ubisoft is currently exploring possible buyout options with Tencent Holdings and the Guillemot family. After a significant decline in market value this year, they are seeking ways to stabilize Ubisoft's finances. The discussions include potentially taking the company private, amidst rising shares following reports of the talks.
Scmp
Ubisoft's Video Gaming Future in Question as Buyout Talks Emerge

Ubisoft and Potential Buyout Discussions

The leading video gaming company, Ubisoft Entertainment, finds itself amidst serious talks about a buyout. Industry giants Tencent Holdings and the Guillemot family are rumored to be considering various options for acquiring the French firm after a staggering loss exceeding 50% of its market value this year. They are seeking advice from financial experts to stabilize Ubisoft's position and strengthen its valuation.

Market Response and Financial Context

Following the Bloomberg News report, shares of Ubisoft surged by up to 33% in Paris, marking the company’s steepest gain since its initial public offering in 1996. Over the past year, Ubisoft's shares depreciated nearly 40%, currently leaving the company valued at around €1.8 billion (approximately US$2 billion).

  • Tencent, which held 9.2% of Ubisoft's voting rights
  • The Guillemot family, possessing about 20.5%
  • Shareholder pressure is growing for strategic options such as a sale or private acquisition

Interest from major private equity firms like Blackstone and KKR & Co. was noted last year, with them evaluating potential investment avenues in Ubisoft. The backdrop of these talks is significant, remembering that Ubisoft has grappled with recovery challenges from pandemic-induced setbacks, including delays on key titles like Assassin’s Creed Shadows.


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.


Related posts


Newsletter

Subscribe to our newsletter for the most current and reliable gaming updates. Stay informed and enhance your gaming knowledge effortlessly.

Subscribe