For several weeks, Ubisoft has faced challenges including low sales of Star Wars Outlaws, a significant drop in stock prices to their lowest point in a decade, an open letter from dissatisfied investors demanding Yves Guillemot’s resignation, and the postponement of Assassin’s Creed until 2025. In response to these issues, Bloomberg reported that Yves Guillemot is considering a buyout by Chinese tech giant Tencent to take Ubisoft private and exit the stock market. This development caused an immediate impact on the stock market, with Ubisoft’s share price increasing by 31.08% to €13.94 and leading the SBF 120 index.
In 2022, Tencent and the Guillemot family had already established closer ties when the Chinese group was invited by the latter to acquire a 49.9% stake in Ubisoft’s capital. Previously, the board of directors at Ubisoft allowed Tencent to directly increase its share from 4.5% to 9.99%, subject to restrictions that prevented the Chinese group from selling its shares for five years and not raising its stake beyond 9.99% of Ubisoft’s capital and voting rights for eight years. Considering recent developments, both companies are reportedly considering further collaboration to avoid potential bankruptcy. “These discussions are only in their initial stages, and it is uncertain whether they will result in a transaction,” explains the press agency. Tencent and the Guillemot family are also exploring other options, according to these sources. Ubisoft declined to comment when contacted by AOF.
If Tencent accepts Ubisoft’s proposal, the French publisher would then become the second major player in the video game industry to have significant Chinese involvement, following Quantic Dream’s decision to become a subsidiary of NetEase in 2022.