Tencent and Guillemot Family Considering Ubisoft Buyout Amid Struggles

by · eTeknix

Ubisoft, once a giant in the gaming industry, is now facing one of its most challenging periods. Over the past year, the company has seen a significant decline, with shares dropping by over 50%. Recent failures, including the flop of Skull & Bones and Star Wars: Outlaws, coupled with the delay of Assassin’s Creed: Shadows, have put Ubisoft in a tough spot.

Tencent and Guillemot Family Plan a Potential Buyout

According to a report from Bloomberg, Chinese tech giant Tencent Holdings and Ubisoft’s founding family, the Guillemots, are exploring the possibility of buying out the struggling French company. They’ve reportedly been in talks with advisors to assess the best course of action. Among the options on the table is taking Ubisoft private to stabilize its declining value.

“Ubisoft’s stock has dropped by 54% in 2024,” one source noted, with the company’s market cap now at roughly €1.4 billion. In 2022, Tencent had already made a significant investment in the company, which at the time silenced previous buyout rumors.

It’s not just Tencent and the Guillemots who are considering this move. Smaller shareholders, such as AJ Investments, have been urging the company to act quickly in deciding whether to be sold or taken off the stock market. For now, Ubisoft’s future remains uncertain as multiple strategies are being weighed.