Tencent and the Guillemot family consider acquiring Ubisoft

According to a report from Bloomberg, Ubisoft's majority shareholders, the Guillemot family, are considering teaming up with Tencent for a buyout. The news comes in the context of disappointing sales last month Star Wars Outlaws and the delay of Assassin's Creed Shadowsin a year in which Ubisoft lost almost half of its market value.

Now, Bloomberg reports that the Guillemot family is talking to advisors in an effort to stabilize the company and increase its market value, with acquisition a potential option. Ubisoft shares are down 40% this year, with the company now valued at 1.8 billion euros ($2 billion).

According to the company's latest annual report, the Guillemot family owns 20.5% of Ubisoft and Tencent 9%, with a potential team-up allowing the two to take the company private. Since the publication of the Bloomberg report, Ubisoft's stock price has risen significantly, already up 30% at the time of this writing.

The lost crown

Last month, Ubisoft's stock price fell to an 11-year low. A minority shareholder, hedge fund AJ Investments, published an open letter calling on Ubisoft board members to consider taking the publisher private.

The letter was followed by punch 1-2 of Assassin's Creed Shadows' postponement to February 14, 2025 and the French employees of Ubisoft are calling for a strike for the mandatory return to the offices. Ubisoft has laid off 45 employees this year. Yves Guillemot, co-founder and CEO, sent a letter to investors on September 25T:

“Our second quarter performance fell short of our expectations, prompting us to address this issue quickly and decisively, with an even greater focus on a player-centric, gameplay-centric approach and an unwavering commitment to long-term value of our brands. While the tangible benefits of the company's transformation are taking longer than expected to materialize, we are maintaining our strategy, focusing on two key verticals: Open World Adventures and native GaaS experiences, with the goal of driving growth, recurrence and robust free cash flow generation in our business.”

“In light of recent challenges, we recognize the need for greater efficiency while satisfying players. Accordingly, beyond the first major actions taken in the short term, the Executive Committee, under the supervision of the Board of Directors, is initiating a review aimed at further improving our execution, particularly in this player-centric approach, and to accelerate our strategy towards a more performing model for the benefit of our stakeholders and shareholders.”

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