Tencent and Guillemot family considering new venture to boost Ubisoft’s value
A recent report from Bloomberg suggests that Chinese tech giant Tencent and the Guillemot family, founders of Ubisoft, are in discussions about creating a new venture. The purpose of this venture would be to incorporate certain assets from Ubisoft in order to increase the company’s overall value.
According to sources familiar with the matter, Tencent and the Guillemot family are currently determining which assets to include in the new entity. This collaboration would result in Tencent acquiring a stake in the venture and gaining control over some of Ubisoft’s intellectual properties.
Recent data from Ubisoft’s annual report indicates that Tencent and the Guillemot family collectively own a substantial portion of Ubisoft’s shares and voting rights. Despite recent increases in share prices, Ubisoft’s stocks have faced challenges over the past year, declining by more than 44% during that time.
While no final decisions have been reached, Tencent has chosen not to comment on the matter. However, a spokesperson for Ubisoft referred to a previous statement made by the company regarding the potential exploration of a sale.
Yves Guillemot, co-founder of Ubisoft, stated on January 9, “We have taken decisive steps to reshape the Group in order to deliver best-in-class player experiences, enhance operational efficiency, and maximize value creation.” He continued, “We are actively exploring various strategic and capitalistic options to unlock the full value potential of our assets.”
In response to recent challenges, Ubisoft has made significant changes to its operations. This includes delaying the release of Star Wars Outlaws to March 20, 2025, in light of feedback on Assassin’s Creed Shadows. The company has also made the decision to close various studios, such as Ubisoft San Francisco, and disband the team behind Prince of Persia: The Lost Crown, despite its critical acclaim.
Last December, Reuters reported discussions between Tencent and Ubisoft regarding a potential acquisition. These discussions appear to have evolved into a partnership between the two companies.
(Source: Bloomberg via VGC)