Is Ubisoft set to fly the Chinese flag sooner than expected? This is at least what an unintentional revelation from the Reuters news agency suggests, indicating that negotiations between French publisher Ubisoft and Tencent are more advanced than initially believed. Indeed, two consistent sources close to the situation have reported that the Guillemot family has been in discussions with video game giant Tencent, as well as other investors, for several weeks regarding financing a takeover of Ubisoft, with the aim of delisting the company from the stock exchange. According to anonymous sources at Reuters, the Guillemot family reportedly wishes to retain control over the company.
Tencent, which is currently the second-largest shareholder in Ubisoft, has not provided any comment regarding the acquisition or the enhancement of its stake in the company. This silence is attributed to Tencent’s demand for greater influence over future board decisions, especially concerning cash flow distribution in exchange for financial support. The Guillemot family has not yet consented to this proposal. Discussions between both parties are still underway as Tencent seeks to prevent a potential hostile takeover of Ubisoft by other investors. Tencent has stated it intends to wait until the Guillemot family accepts an agreement. Additionally, Tencent might decide against increasing its stake further, given that its current 10% direct holding is deemed adequate for maintaining business cooperation in the gaming sector.
When contacted by Reuters, Tencent declined to comment on the situation. Similarly, at Ubisoft, there was no response to growing rumors that are becoming increasingly insistent and precise. “We remain determined to make decisions in the best interest of all our stakeholders,” stated an Ubisoft spokesperson. “In this context, as we have previously indicated, the company is also examining all strategic options.” In October, Ubisoft mentioned that it regularly reviews “all strategic options” but refused to comment further on a report about potential acquisition interest.
Ubisoft’s shares rose by 16% following the publication of a Reuters article. They were trading up by 12.1% at 13.2 euros at 2:45 PM GMT. Buyout talks are underway as some minority shareholders, including AJ Investments, have been advocating for an exit from the stock market or a sale to a strategic investor amid a decline in the company’s share price, as previously reported by Reuters. The company’s shares reached their lowest level in a decade in September after it reduced its forecasts due to lower-than-expected sales and delayed the launch of “Assassin’s Creed Shadows.”
We recently learned that the game XDefiant has been put on hold, leading to the closure of its production studios in San Francisco and Osaka, as well as reduced operations at Ubisoft Sydney. Ubisoft is led by the Guillemot family, which holds 15% of the company’s shares, followed by Tencent with slightly less than 10%, according to LSEG data. As of the latest annual report, the Guillemot family held approximately 20.5% of Ubisoft’s net voting rights, while Tencent held 9.2%.
For all you gaming enthusiasts out there, be sure to check out our recent article “Lost Soul Aside: Chinese Devil May Cry to Utilize NVIDIA’s RTX Performance, 20 Minutes of Gameplay” by Marcus Thompson, published on July 31st. The piece delves into the exciting progress of this highly anticipated game, which not only pays homage to the iconic Devil May Cry series but also boasts impressive technical advancements thanks to NVIDIA’s RTX technology. Developed solely by Yang Bin and confirmed for PC and PS5 releases, Lost Soul Aside is shaping up to be a must-watch title in the upcoming months. Dive into the details Lost Soul Aside: Chinese Devil May Cry to Utilize NVIDIA’s RTX Performance, 20 Minutes of Gameplay. As we delve into the intricate world of corporate negotiations and strategic partnerships, it’s exciting to see Ubisoft expanding its horizons with culturally rich content. For a sneak peek into their latest venture set against the majestic backdrop of Imperial China, be sure to check out “Assassin’s Creed Jade.” Sophie Laurent’s insightful piece from August 23rd unravels the mysteries behind this highly anticipated mobile game, featuring an immersive open-world environment and stealth missions. Dive deeper into the fascinating details at Assassin’s Creed Jade: Eight Months After Leaks, China-Set Episode Unveils First Official Gameplay Trailer. If you’re a fan of classic arcade games, you won’t want to miss the latest addition to your mobile gaming arsenal: “Metal Slug Awakening” is now available globally on mobile devices (excluding France). Sophie Laurent delves into this long-awaited 2.5D remake, developed by TiMi Studios (a subsidiary of Tencent), which introduces an array of new characters and exciting gameplay mechanics. Released on August 24th, the game features a blend of live-action and CGI in its launch trailer, available now on both AppStore and Google Play. Dive into the action-packed world of Metal Slug and experience all the nostalgia and excitement with up to four players! Metal Slug Awakening: Game Now Available, Trailer Blends Live-Action and CGI
