Ubisoft shareholders are reportedly in talks to progress a potential buyout of the company as the studio faces continued hardships with commercial failures and widespread criticism.
The shareholders are supposedly considering how to structure the potential buyout of the Assassin's Creed creator. On top of this, the Guillemot family seems to be planning on staying in power even after the buyout.
Potential Ubisoft Buyout
The Guillemot family is known as the largest and founding shareholder of Ubisoft and has been talking with Tencent and other investors for a potential buyout deal. They talked about funding a management-led buyout of France's largest video game maker.
Two people who are familiar with the discussions said that the Guillemot family expressed their desire to retain control over Ubisoft. The situation comes as Tencent is the second-largest shareholder and is China's biggest social network and gaming company.
The latter has yet to decide on whether or not it would participate in a potential buyout and increase its stake in Ubisoft. Tencent apparently wants to have a bigger influence on the company on future board decisions, according to Reuters.
The two parties are still talking about the potential buyout and Tencent also appears to want to prevent the possibility of hostile takeover of Ubisoft by other investors.
It was also noted that the Chinese company's plan is to be patient and simply wait for the founding family to agree to a deal.
There is also the chance that Tencent opts out of trying to increase its stake in Ubisoft. This is because it considers its current direct holding of nearly 10% sufficient to maintain its gaming business cooperation with the Assassin's Creed creator.
Struggling With Various Issues
Rumors about a potential buyout of Ubisoft started in October 2024 when the company struggled amid game flops and widespread criticism. The latest development seems like a much more concrete step forward for the company, PCGamer said.
Ubisoft was put in a similar situation a few years ago when it fought in a protracted war to maintain its independence from Vivendi. The latter is a French media conglomerate that launched a hostile takeover in 2016.
The latest rumors led to Ubisoft''s share prices skyrocketing due to Tencent's involvement in a potential buyout. Ubisoft's year has been mired with studio closures, mass layoffs, and game shutdowns.
Assassin's Creed Shadows is the company's next major release and is set to come out in 2025. It would come after Star Wars Outlaws failed to meet the company's standards, according to IGN.
