Ubisoft Considering Buyout With Tencent To Take Company Private

As a gamer with decades of experience under my belt, I’ve witnessed Ubisoft‘s rise and fall, their triumphs and tribulations. The news about potential Tencent buyout has me scratching my graying beard in thought. If it weren’t for the Guillemot family’s legacy, I might be worried. But, they’ve always managed to pull through even when the odds were stacked against them.

It’s looking likely that Ubisoft might experience a significant shift in the near future. Based on recent reports by Bloomberg, there’s talk that the founding Guillemot family could sell their stake to Tencent.

After experiencing one of the toughest years in the company’s lifespan, Ubisoft is now engaging in talks. The gaming giant’s stocks have plunged to levels not seen for over a decade, its Star Wars Outlaws title has faced sales difficulties, and the release of the next Assassin’s Creed game has been postponed until 2025.

RELATED: Vice President of Rainbow 6, Cameron Lee, Has Left Ubisoft

According to a Bloomberg report, both the Chinese tech firm and Guillemot Brothers Ltd. are consulting advisors in an effort to find strategies for strengthening Ubisoft’s stability and increasing its worth.

Reports suggest that one possible move under consideration might be to make the company a privately-held entity. However, it’s important to note that discussions about this matter are still in their initial phases, and there’s no guarantee that a deal will be finalized.

“Tencent and the Guillemot family are also considering other alternatives,” sources told Bloomberg.

READ MORE: Ubisoft Workers Encouraged To Strike Over Return To Office Mandate

The concept of Ubisoft transitioning into a privately-held company has been floating around for some time now. Lately, there’s been a significant surge in smaller investors advocating for this change. In fact, it has garnered the backing of at least 10% of the company’s shareholders.

Presently, Tencent holds approximately one-tenth ownership stake in Ubisoft, a company that was initially established by the Guillemot family back in 1986. For over three decades, Yves Guillemot has been serving as CEO of this company, but due to investor pressure for a potential sale, he has recently faced calls for his dismissal from his leadership role.

Neither Ubisoft nor Tencent have commented publicly on this report.

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