Tencent Negotiates Deal to Privatize Ubisoft
Dec. 8, 2024Tencent Negotiates Deal to Privatize Ubisoft
A new report claims thatTencentis negotiating with Yves Guillemot to turnUbisoftinto a 100% private company, removing it from the influence of shareholders.
Ubisoft, one of the world’s leading video game companies and a major force in Europe, has not been performing at its best in recent years. Recent releases likeStar Wars Outlaws and Avatar: Frontiers of Pandorafell short of expectations, and the outlook remains uncertain.
According to a new Reuters report, Ubisoft may soon become a fully private company, with Tencent as the majority shareholder but remaining under the control of the Guillemot family, as it has been for decades.
This possibility seems increasingly plausible, especially as the Reuters report has caused Ubisoft’s stock value to rise by 16%.
Reuters highlights earlier reports from October, particularly following the shocking closure of XDefiant,Ubisoft’s ambitious shooter meant to rivalCall of Duty.
Yves Guillemot is exploring ways to turn Ubisoft’s fortunes around, and privatization appears to be the strategy to regain full control.
To achieve this, the Guillemot family is negotiating with Tencent, which already holds a significant stake in Ubisoft. The report indicates that the Guillemots aim to privatize Ubisoft and distance it from shareholder influence. Tencent is on board but seeks a more prominent role in decision-making within the board of directors.
“We remain committed to making decisions that consider the interests of all our shareholders. In this context, as we have previously stated, the company is reviewing all its strategic options,” a Ubisoft spokesperson told Reuters.
Negotiations seem destined to succeed, as Ubisoft shares have surged by 16% following the Reuters report, indicating that privatization is viewed as the best path forward during the company’s current crisis.
Tencent’s strategy involves patience, allowing the Guillemot family to find the most suitable approach. They are not planning a hostile takeover, nor do they see the need to increase their stake. Instead, they aim to play a more significant role in the company’s decision-making processes.
For more Fextralife news, be sure to check outUbisoft Could Be Acquired by Tencentand alsoUbisoft Confirms They Are Considering Selling The Company to Tencent
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