Tencent and Guillemot Brothers Aims to Acquire Ubisoft

Business

04 October 2024 19:51

Tencent and Guillemot Brothers Ltd are reportedly exploring a potential buyout of Ubisoft as the company faces significant challenges with both gamers and shareholders. Despite ongoing calls for restructuring, Ubisoft has not provided any updates on potential changes.

Sources close to the situation informed Bloomberg that initial discussions have taken place regarding the buyout. However, these talks are in early stages, and no agreement is guaranteed. This development follows a call from AJ Investments for Ubisoft to go private after the company's share prices dropped to their lowest levels, particularly following the disappointing reception of Star Wars Outlaws.

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Ubisoft's market capitalization currently stands at $1.5 billion, with shares down 54% this year and hitting a ten-year low due to "softer than expected" sales of Star Wars Outlaws. The game's director has expressed disappointment with its performance.

Guillemot Brothers Ltd, a family-run company, includes members who founded Ubisoft, such as CEO Yves Guillemot. GBL holds 20% of Ubisoft's voting rights, while Tencent controls 9.2%. In 2022, Tencent increased its stake in GBL, boosting its investment in Ubisoft.

Tags: Ubisoft

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