Ubisoft in Talks with Tencent for Potential Buyout
After facing years of challenges, Ubisoft is now reportedly in discussions with Chinese tech giant Tencent for a potential buyout. According to a recent report by Reuters, talks are underway with the stipulation that the founding family of Ubisoft, the Guillemots, will maintain a controlling share in the company.
Ubisoft’s Response to Potential Buyout
Sources from Reuters suggest that Ubisoft shareholders are exploring options to structure the deal in a way that allows the Guillemot family to retain their existing stake in the company. The Guillemots have been engaged in discussions with Tencent as well as other potential investors to find a solution that would allow Tencent, currently the second-largest shareholder in Ubisoft, to increase its ownership.
Tencent is reportedly seeking greater decision-making authority as part of their investment, aiming to prevent any hostile takeover attempts by other entities. The company is said to be exercising patience while awaiting the Guillemot family’s approval for the deal.
Regarding these developments, a spokesperson from Ubisoft stated to Reuters, “We remain committed to making decisions in the best interests of all our stakeholders. In this context, as we have already indicated, the Company is also reviewing all its strategic options.”
Following recent allegations of workplace misconduct that led to the departure of several Ubisoft executives, the company has faced challenges with underwhelming game releases and declining sales. This has subsequently resulted in layoffs and the closure of some of its studios.