Ubisoft and Tencent Talks Lead To Speculation Of Going Private

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Ubisoft and Tencent Talks Lead To Speculation Of Going Private

Key Takeaways

  • Tencent in talks to stabilize Ubisoft, may privatize company.
  • French market reacts positively to news by sending stock price soaring.
  • Ubisoft has faced a turbulent year with low sales and investor calls for major change at the company.

As a seasoned gamer with memories of countless sleepless nights immersed in the rich worlds crafted by Ubisoft, hearing about the company’s potential shift towards private ownership leaves me both intrigued and apprehensive. The Chinese tech titan Tencent seems eager to take the reins, a move that, if successful, could breathe new life into a company that has been grappling with turbulent waters for quite some time now.

The tale of Ubisoft continues to unfold, as it now seems to be stepping into the realm of Halloween-like changes. According to recent speculation, Chinese tech titan Tencent could potentially take control of the company’s operations.

According to a recent Bloomberg report, Tencent Holdings Ltd. appears to be holding discussions with Guillemot Brothers Ltd., who are the proprietors of Ubisoft, primarily focusing on solidifying the company’s position.

Looking back on this gaming year, I’ve got to admit it’s been quite a rollercoaster ride for me as a Ubisoft fan. Some of their flagship titles, such as Star Wars Outlaws, didn’t quite live up to the hype and left me wanting more. To add to that, things took an unexpected turn when AJ Investments made a move to seize control of the company. As a result, Ubisoft’s share value plummeted a staggering 40%, hitting an all-time low. It’s definitely been a challenging time for the gaming giant and its devoted community like myself.

Tencent already had a connection with Ubisoft, as they purchased 49.9% of shares from the Guillemot Brothers Ltd. holding company back in 2022. The latest financial report indicates that their ownership represents 9.2% of net voting rights, whereas the Guillemot brothers still hold 20.5%.

During the Chinese National Day holiday, which takes place from October 1 and lasts for a week, it remains unclear what the official response will be from the Chinese side, as Tencent employees are taking time off.

The French market showed a favorable response on Friday, experiencing an unprecedented increase of 33%, following the announcement. So far, the Guillemot family has chosen not to make any comments regarding the situation.

Ubisoft’s Road to Chaos

Ubisoft and Tencent Talks Lead To Speculation Of Going Private

The French studio started the year with high hopes, banking on the highly-anticipated release of Star Wars Outlaws and Assassin’s Creed Shadows, but things began unraveling over the summer.

Initial issues surfaced when the multiplayer game XDefiant unexpectedly stopped functioning, even though it had been successfully launched in May.

In August, the release of “Star Wars: Outlaws” was met with moderate criticism and sales significantly lower than anticipated.

Initially released figures caused investors to become alarmed, leading to stocks reaching their lowest point in a decade and prompting a Slovakian hedge fund to urge the Guillemot family to dispose of the company.

So far, the most significant change in the Ubisoft storyline was the last-minute delay of Assassin’s Creed Shadows.

Initially, the game was planned for release in November, with a playable demo scheduled at the Tokyo Game Show and press previews about to be distributed. However, Ubisoft unexpectedly withdrew from these initiatives, followed by an announcement that the game has been delayed until 2025.

2021 hasn’t been a clearly successful year for Ubisoft since before the pandemic, and it appears that the long hours and underwhelming game releases have finally taken their toll on the French video game company.

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2024-10-04 22:08