In a recent development surrounding Chinese gaming behemoth Tencent, Bloomberg reports that the company is currently in talks with the Guillemot family, the owners of Ubisoft, regarding a possible acquisition of the game developer.
Sources reveal that both Tencent and the Guillemot family have been engaging with advisors to explore the feasibility of jointly privatizing Ubisoft. However, it’s important to note that these discussions are still in the preliminary phase, and a range of options is being evaluated. As of late April, Tencent held 9.2% of Ubisoft’s voting rights while the Guillemot family had approximately 20.5%.
These negotiations come in the context of a significant drop in Ubisoft’s stock price. Minority shareholders, including AJ Investments and Blackstone Group, have been advocating for either a privatization of Ubisoft or a sale to strategic investors. Analysts suggest that the involvement of Tencent and the Guillemot family could help stave off more aggressive takeover attempts, thereby allowing the Guillemot family to continue overseeing Ubisoft’s management.
In the wake of this news, Ubisoft’s stock saw a remarkable surge of 33% in Paris on October 4, marking the largest increase since the company went public in 1996.
Ubisoft is widely recognized for its successful “Assassin’s Creed” franchise, yet the release of the upcoming installment, “Assassin’s Creed: Codename Jade,” has sparked controversy. Set in Japan, the game features a Black samurai as the main character, leading to backlash from players who argue that this choice misrepresents Japanese history and culture.
In light of the ongoing controversy, Ubisoft has revised its sales expectations for “Assassin’s Creed: Codename Jade” downward and announced a delay in its release, now scheduled for February of next year.
Moreover, Chinese media reports indicate that several Ubisoft employees have expressed concerns about the anticipated underperformance in the company’s game sales for 2024. They attribute these challenges not to external market conditions, but rather to underlying issues within Ubisoft’s management culture.
