The potential sale of video game developer Ubisoft to Chinese giant Tencent could lead to a "new venture" as part of the major change.
The Guillemot family is said to be considering creating a new venture that would include specific assets of the company. The rumors come as they seek to boost the studio's value amid a series of commercial flops in the industry.
Potential Ubisoft Sale
Tencent and Ubisoft are reportedly evaluating which assets to include in a new entity and their valuation, people familiar with the situation said.
The potential sale of the video game company would allow the former to own a stake in the venture and have even more control over Ubisoft's intellectual properties.
On Wednesday, Ubisoft shares rose by as much as 4.3%, which was the biggest intraday gain in nearly three weeks.
The company's stock has dropped by roughly 47% in the last 12 months, which resulted in Ubisoft having a market value of about $1.6 billion, according to Yahoo Finance.
In September last year, Ubisoft also lowered its outlook, noting that it decided to delay the debut of "Assassin's Creed Shadows" from November 2024 to February 2025. More recently, the company once again delayed the game to March 2025.
Apparently, deliberations are already ongoing but no final decisions have been made yet regarding Ubisoft's sale. A Tencent representative declined to comment on the matter and a spokesperson for Ubisoft referred to the Jan. 9, 2025, announcement for details.
The Fate of the Company
Currently, Ubisoft oversees several massive video game franchises, such as "Assassin's Creed," "Ghost Recon," "Splinter Cell," and "Tom Clancy." The company has reportedly been seeking a buyout since at least 2024, Windows Central said.
There have been various conversations between CEO Yves Guillemot and Tencent but there has been no final agreement yet. The major question that fans have amid the negotiations is what fate "Assassin's Creed Shadows" would have.
The latest entry in the "Assassin's Creed" franchise is the only game that Ubisoft has publicly revealed to be slated for a 2025 release. This has increased pressure for the game to perform well commercially.
Guillemot previously said that he saw "several potential paths" for Ubisoft and its video game franchises moving forward that would maximize shareholder value.
The announcement on Jan.9, 2025, revealed that Ubisoft appointed advisors to examine different opportunities for the company.
In other news, Tencent was recently added to a list of companies that are blacklisted by the United States Department of Defense. This was due to their alleged connection to the Chinese military, according to Game Spot.
