Tencent and Guillemot Family May Be Buying Out Ubisoft

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Tencent and Guillemot Family May Be Buying Out Ubisoft

Key Takeaways

  • Ubisoft may be bought out by Tencent and the founding Guillemot family due to recent commercial struggles.
  • Some have called for Ubisoft to go private, while others have suggested that current Ubisoft CEO Yves Guillemot step down.
  • Despite mostly positive reviews, Star Wars Outlaws fell short of sales expectations, and the delay of Assassin’s Creed Shadows to 2025 has only exacerbated Ubisoft’s current troubles.

As a seasoned gamer with memories of countless hours spent immersed in the worlds created by Ubisoft, I can’t help but feel a mix of emotions about the potential buyout by Tencent and the Guillemot family. On one hand, it’s disheartening to see a company that has given us so many cherished gaming moments struggling financially. On the other, I can’t deny the allure of a fresh perspective and possibly much-needed changes in management.

There are rumors that Tencent and the Guillemot family could soon take over Ubisoft, a publishing company that’s been struggling financially recently. The Guillemots started Ubisoft in the late 1980s; it was originally called “Ubi Soft.” At first, they mainly produced PC games and licensed titles for handheld systems, but everything changed in 1995 when their game Rayman on PlayStation became a huge hit. Since then, Ubisoft has grown into one of the largest publishers in the gaming industry, thanks to popular franchises like Splinter Cell, Assassin’s Creed, and Prince of Persia.

Regrettably, Ubisoft hasn’t had a very productive run over the past few years due to a series of controversies and underperforming releases. The latest game, Star Wars Outlaws, received positive reviews initially but failed to meet Ubisoft’s sales targets, causing the company’s stock to plummet to its lowest point in a decade post-launch. Matters worsened when Assassin’s Creed Shadows, initially scheduled for November 15 release, was pushed back to February 14, 2025 following numerous controversies.

There’s growing speculation that Ubisoft might be taken private due to recent challenges in both critical and commercial spheres, prompted by investor demands. Reports from anonymous sources suggest that Tencent Holdings Ltd. and the Guillemot family (Ubisoft Entertainment SA’s founders) are exploring the possibility of acquiring Ubisoft to bolster its market worth. However, both parties have remained silent on this matter for now, as they also investigate other potential strategies.

Ubisoft Founder Guillemot Family May Buy Out the Company

Recently, Juraj Krupa from AJ Investments proposed that Ubisoft consider going private for the first time since 1996 due to a dip in its stock prices. Additionally, some have suggested that current CEO Yves Guillemot should resign as part of a strategic change. Among other suggestions made over the past month are downsizing the workforce, potentially leading to further job losses at Ubisoft, and focusing more on their well-known franchises such as Rainbow Six Siege, Assassin’s Creed, and Watch Dogs.

Based on a recently published financial report, Ubisoft’s stocks have surged approximately 33% in Paris since the rumors of the Guillemot family buyout and Tencent’s increased activity surfaced. This marks the company’s most significant growth since 1996. However, it remains uncertain whether this Ubisoft buyout will transpire. Yet, there appears to be a general consensus that changes are necessary for the struggling triple-A publisher facing difficulties.

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2024-10-04 19:05