Ubisoft Co-Founders Want To Maintain Control As Talks With Tencent Continue – Report

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As a dedicated gamer and long-time Ubisoft fan, this news piqued my interest. The Guillemot family’s efforts to maintain control of Ubisoft while securing funding is a delicate dance that many gaming giants have faced before. I remember when Vivendi attempted a hostile takeover in 2017; it was a nail-biting moment for us gamers.

As per recent reports, Ubisoft’s founding family is actively seeking investments to maintain the company’s strong financial position, all the while aiming to retain influence over the company’s future direction.

According to Reuters, the Guillemot family, who hold the majority share in Ubisoft, are discussing potential funding options with Tencent and other financial associates, aiming to facilitate a takeover led by management.

In negotiations, it appears that Tencent wants to have increased influence over Ubisoft’s future board decisions as a condition for injecting additional funds, but the Guillemot family, including CEO Yves Guillemot, are reportedly insistent on maintaining control of the company. This issue has been causing friction in financing talks. Additionally, it was noted that Tencent might not be willing to invest any more capital into Ubisoft.

The report continued by stating that Tencent aims to negotiate an agreement to ward off any future attempts by other companies for a hostile acquisition of Ubisoft, as was attempted by Vivendi in 2017. Ubisoft, the prominent gaming company based in France, successfully thwarted this attempt after entering into agreements with Tencent and a Canadian pension fund.

Tencent currently holds nearly 10% of Ubisoft stock. The Guillemot family owns 15%.

Ubisoft reaffirmed their dedication to putting the needs of all their stakeholders first in a statement to Reuters. Furthermore, they mentioned that they are currently examining every possible approach for their future strategy.

This week, Guillemot shared a memo with employees hinting at ongoing negotiations about the company’s future. In their announcement regarding the termination of XDefiant and the closing of several studios leading to mass layoffs, Guillemot stated, “I am diligently working with my team to find the optimal solutions so we can keep shaping our own path.

This recent news is a continuation of a tale from October suggesting Ubisoft and Tencent were considering several possibilities, including a complete acquisition. Previously, Ubisoft admitted that negotiations were ongoing as they sought an agreement beneficial to their shareholders. The earlier report indicated that these discussions were still in their infancy, and this new report gives no indication that any deal is imminent.

A smaller shareholder, AJ Investments, and a hedge fund, have publicly requested Ubisoft to transition into a privately-held company and adjust their business approach, as stated in a letter they released in September.

In September, Ubisoft’s stocks plummeted to their lowest since 2015, dropping by 12.6% following the release of Star Wars Outlaws, which didn’t sell as well as anticipated. To incorporate lessons learned from the launch of Star Wars Outlaws, Ubisoft decided to push back the release date for Assassin’s Creed Shadows from November 15, 2024, to February 14, 2025.

Today, December 6th, Ubisoft’s stock soared up to 16% following the Reuters report. However, despite this recent increase, the company’s share price has dropped over 70% in the last five years.

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2024-12-06 18:39