UBISOFT ON THE BLOCK: Tencent and Guillemot Family Eye Up the Frenzied French Videogame Developer
The Ultimate Power Play?
In a move that’s sending shockwaves through the gaming industry, Tencent Holdings and Ubisoft’s founding Guillemot family are reportedly considering a potential buyout of the beleaguered French videogame developer. Yes, you read that right – Ubisoft, the maker of Assassin’s Creed and Far Cry, could be on the chopping block.
Market Mayhem
Ubisoft’s shares have plummeted a whopping 54% this year, wiping out over €700 million from its market value. The company’s struggling to recover from a pandemic-era production crunch that led to delays and cancellations of popular titles. Last month, Ubisoft’s shares hit a 10-year low after the company slashed its outlook due to weaker-than-expected sales.
A Match Made in Heaven?
Tencent, China’s gaming giant, already owns 9.2% of Ubisoft’s net voting rights, while the Guillemot family holds around 20.5%. The two parties are said to be exploring options to stabilize the company and boost its value. A potential buyout could be the answer to Ubisoft’s prayers, or a sinister plot to take control of the company’s lucrative IPs.
The Plot Thickens
Minority shareholders, including AJ Investments, have been pushing for either a take-private or a sale to a strategic investor. Tencent and the Guillemot family are also weighing other alternatives, including teaming up to take Ubisoft private. But with Ubisoft’s market value at a historic low, the timing couldn’t be more crucial.
Stay Tuned
Will Tencent and the Guillemot family follow through on their plans to buy out Ubisoft? Only time will tell. In the meantime, gamers and industry insiders alike are on edge, wondering what the future holds for one of gaming’s most beloved franchises.
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