Tencent and Guillemot Family Considering Options for Ubisoft

According to a report from Bloomberg, Tencent Holdings Ltd. and the founding Guillemot family of Ubisoft Entertainment SA are exploring several options, including a potential buyout of the French video game developer, after its market value dropped by more than half this year.

Both Tencent and Guillemot Brothers Ltd. have reportedly been in talks with advisers to evaluate ways to stabilize Ubisoft and improve its value, as cited by sources familiar with the matter.

The sources also mentioned that one strategy being considered is a joint effort to take the company private. However, these discussions are still in the early stages, and there is no guarantee they will lead to a transaction.

Following this news, Ubisoft shares saw a surge of over 29%.

Latest figures show that Tencent controls 9.2% of Ubisoft’s voting rights, while the Guillemot family holds around 20.5%.

This year, Ubisoft’s stock has plummeted by 54%, leaving its market capitalization around €1.4 billion ($1.5 billion). This significant decline has encouraged some minority shareholders, like AJ Investments, to advocate for a potential sale or take-private deal.

Despite such efforts, Tencent and the Guillemot family are also contemplating other options according to Bloomberg’s sources. Last month, Ubisoft shares reached their lowest level in over a decade after the company opted to cut its forecast due to disappointing sales and delays with the much-anticipated “Assassin’s Creed Shadows” game.