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Tencent and Guillemot family considering a buyout of Ubisoft

Tencent and Guillemot family considering a buyout of Ubisoft

  • Ubisoft shares recently fell to a 10-year low with the studio delaying its upcoming Assassins Creed Shadows title
  • Tencent and the founding Guillemot familt could come together to organise a buyout of the developer in a bid to restore value to Ubisoft

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Tencent and the Guillemot family are considering a buyout of Ubisoft, according to a new Bloomberg report. 

The French video game developer has faced difficulty over recent years with game releases not hitting the mark, such as the recent Star Wars Outlaws, with sales landing “softer than expected.” 

With these issues comes financial trouble for the studio, with Ubisoft shares plummeting by 20% following the delay of its upcoming Assassin’s Creed Shadows. 

To buy or not to buy?

According to the report and people familiar with the matter, the Guillemot brothers have been speaking with advisers to explore ways of stabilising Ubisoft and restoring its value.

One potential solution is to team up with others to see the company taken private and consider a buyout of the video game developer after significant market value drops.

Ubisoft shares have increased by 30% since the report was released, setting Ubisoft up for its biggest one-day jump on record.

Tencent purchased almost 50% of Guillemot Brothers in 2022 and maintains a 9.2% hold of Ubisoft’s net voting rights, with Guillemot holding around 20.5%. 

While nothing is currently official, a minority investor in Ubisoft recently called for a change in leadership and mentioned the company being taken private or sold after its shares fell to a 10-year low. 

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