Tencent Plans to Acquire Ubisoft with the Guillemot Family

Ubisoft’s Guillemot family and Tencent are reportedly in talks to take the company private amid a rough year marked by several high-profile game failures and a significant drop in share prices. Bloomberg indicates that these discussions aim to stabilize Ubisoft, which has seen its shares plummet 54% this year. However, it's important to note that these talks are preliminary and could lead to various outcomes, with a buyout not being the only option.

The Guillemot family, including CEO Yves Guillemot, holds over 20% of Ubisoft’s shares, while Tencent owns just over 9%. Following news of the potential collaboration, Ubisoft’s shares experienced a notable rebound of 26.33%.

This year has been particularly challenging for Ubisoft, highlighted by disappointing returns from games like XDefiant and Star Wars Outlaws. The company recently delayed Assassin’s Creed Shadows to 2025 due to poor sales and faced unrest among its staff, who are planning a strike later this month.

In a recent note to investors, Yves Guillemot acknowledged that the second quarter fell short of expectations and announced a review aimed at improving execution. He also touched on cultural issues within the company, which have been exacerbated by the reception of Star Wars Outlaws and the upcoming Assassin's Creed Shadows.

To combat its declining sales, Ubisoft has reverted to launching its PC games on Steam from day one, abandoning its previous timed exclusivity with the Epic Games Store. This move signals a strategic pivot to bolster its struggling sales efforts.