Tencent Holdings and the Guillemot family are reportedly considering a buyout of Ubisoft, the French video gaming firm known for its popular franchises like Assassin's Creed. This interest comes as Ubisoft's market value has plummeted by over 50% this year, with shares falling approximately 40% in 2024, leading to a market capitalization of around €1.8 billion (approximately $2 billion) [084218a8].
Tencent currently holds 9.2% of Ubisoft's voting rights, while the Guillemot family, which founded the company, controls 20.5%. Following the news of the potential buyout, Ubisoft's shares surged by 33%, marking the steepest gain since its initial public offering in 1996 [084218a8].
Ubisoft has faced significant challenges recently, including production delays and weaker-than-expected sales, prompting a downward revision of its financial outlook. The company is exploring various alternatives as it navigates these difficulties, and discussions regarding the buyout are still in the early stages, with no guarantee of a transaction occurring [084218a8].
In a related context, Tencent has been active in reshaping its investment portfolio, having recently sold $206 million worth of shares in Futu, a Hong Kong-based online brokerage. This sale is part of Tencent's strategy to adapt to changing economic conditions in China, where the government is implementing measures to stimulate the economy [3babdd72].
As Tencent continues to diversify its investments and explore opportunities in the gaming sector, the potential acquisition of Ubisoft could represent a significant strategic move for both Tencent and the Guillemot family, particularly as they seek to capitalize on the evolving landscape of the gaming industry.