A recent report by Bloomberg suggests a potential buyout of video game giant Ubisoft amid its poor performance. This news comes after Ubisoft faced criticism from gamers and investors alike and a decline in stock value.
Shareholders have been pushing for company changes for some time, but details remain unclear. Now, it seems Tencent, a major Chinese tech company, and the Guillemot family, Ubisoft’s founders, are exploring ways to stabilize the company.
Given Ubisoft’s current struggles, the report suggests a potential joint effort by Tencent and the Guillemot family to buy out Ubisoft and remove it from public stock exchange listings.
Following the start of potential buyout talks, Tencent and the Guillemot family have consulted with advisors to explore the feasibility of acquiring Ubisoft. However, these discussions are in their preliminary stages, and there’s no guarantee of a successful deal.
The news comes after AJ Investments urged Ubisoft to go private, a move prompted by a significant drop in share prices following the release of Star Wars Outlaws. Ubisoft’s current market capitalization stands at $1.5 billion, with shares plummeting by 54% this year. The company’s stock reached a ten-year low due to lower-than-anticipated sales of Star Wars Outlaws, which even led the game’s director to express disappointment in its reception.
Guillemot Brothers LTD, a family-owned company, played a crucial role in the founding of Ubisoft. CEO Yves Guillemot is a member of the family. GBL currently holds 20% of Ubisoft’s voting rights, while Tencent owns 9.2%. In 2022, Tencent increased its stake in GBL. This move indirectly increased Tencent’s investment in Ubisoft.
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