Ubisoft Responds to Report of Tencent and Guillemot Family Considering Takeover Bid

According to a report from Bloomberg, Tencent Holdings Ltd. and the founding Guillemot family of Ubisoft Entertainment SA are exploring various options, including a potential buyout of the French video game developer, after its market value declined by over 50% this year.

Reports indicate that both Tencent and the Guillemot family have engaged in discussions with advisers to assess methods for stabilizing Ubisoft and enhancing its value. One potential strategy under consideration is a joint effort to take the company private.

However, these discussions are still in the preliminary stages, and there is no assurance that they will lead to a transaction.

Following this news, Ubisoft’s shares experienced a jump of more than 29%.

Currently, Tencent possesses 9.2% of Ubisoft’s voting rights, while the Guillemot family controls roughly 20.5%. This year, Ubisoft’s stock has fallen by 54%, resulting in a market capitalization of around €1.4 billion ($1.5 billion). This sharp decline has led some minority shareholders to advocate for a potential sale or a move to take the company private.

Despite these initiatives, both Tencent and the Guillemot family are also considering alternative options, as reported by Bloomberg.

Last month, Ubisoft’s stock plummeted to its lowest point in over a decade, following the company’s announcement to revise its outlook due to disappointing sales and delays with the eagerly awaited “Assassin’s Creed Shadows” game.