Tencent and Guillemot Family Exploring Potential Buyout of Ubisoft
Market Challenges and Buyout Discussions
Tencent Holdings and Ubisoft Entertainment SA's founding Guillemot family are exploring options, including a potential buyout, to address Ubisoft's recent decline in market value. Following a loss of more than half its worth this year, advisers are being consulted to find ways to stabilize the company and bolster its financial standing.
Recent Developments
- Ubisoft shares increased by 33 percent in Paris after news of the buyout talks.
- The studio’s shares have dropped about 40 percent this year, leading to a market capitalization of approximately EUR 1.8 billion.
- Tencent owns 9.2 percent of Ubisoft's net voting rights, while the Guillemot family holds around 20.5 percent.
Some minority shareholders are advocating for a take-private transaction or a sale to a strategic investor amidst stock price concerns. However, these discussions are currently in the early stages, and no definitive outcome is assured.
Future Prospects
- Ubisoft's shares reached their lowest in a decade after weak sales forecasts and delays on key titles.
- Other potential investors include private equity firms that have previously shown interest in Ubisoft.
- Tencent's past investment allowed the Guillemot family to retain control over Ubisoft's governance despite the Chinese company's significant stake.
As these talks progress, the future direction of Ubisoft remains uncertain. Spokespeople for both parties have opted not to comment on the ongoing discussions.
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.