Big moves are afoot in the gaming world as Tencent and the Guillemot family ponder a new direction for Ubisoft! Recent reports suggest that these two power players are contemplating establishing a new venture, potentially shifting some of Ubisoft’s assets into this fresh entity. With so much at stake, it’s time to unpack what this could mean for fans and shareholders.
The buzz started with a report from Bloomberg, which indicated that Tencent, alongside Ubisoft’s founding Guillemot family, is exploring ways to bolster the company’s value. Moving select assets over to a newly created venture could give Tencent more control over those intellectual properties while potentially lifting Ubisoft’s overall market standing.
The Guillemot family holds 14% of Ubisoft’s shares, while Tencent has around 9.99%. Ubisoft’s share price has taken quite a hit over recent years due to various underwhelming game releases. From €84.60 in February 2021 down to €11.41 recently. This decline coincided with news about delays like that of Assassin’s Creed Shadows, which hasn’t helped matters.
In addition, there was also the tough decision to pull the plug on its live service game XDefiant, along with disappointing launches like Star Wars Outlaws. Things were looking pretty bleak.
Last October, Tencent and the Guillemots discussed stabilizing Ubisoft after its market value was nosedived by more than half within just one year. Talks had even suggested taking Ubisoft private, a bold move, although those discussions were still in their infancy.
A recent report by Reuters added another layer, revealing that shareholders were mulling over how to structure potential buyouts without diminishing the Guillemots’ influence. It seems Tencent is weighing its options too, debating whether or not to up its stake while seeking more say in board decisions amid fears of a hostile takeover by other investors.
This situation certainly adds an interesting twist to how we view Ubisoft’s future. Will this venture help stabilize their offerings? Or will we see more turbulence ahead? Only time will tell as these developments unfold.
