Media: Ubisoft could fall into dependence on Tencent, but is trying to avoid it
In early October, Bloomberg reported that the two largest holders of Ubisoft shares - the Guillemot family and Chinese giant Tencent - were discussing the possibility of a full buyout of the French game publisher's securities. At that time the discussion was at an early stage and no decision has been made, but it seems that the discussion continues and the companies may come to an agreement.
Here's What We Know
Two sources told Reuters that both Ubisoft and Tencent are aware of the company's precarious position and do not want to allow it to be taken over by a third party. Family Guillemot and the management of the Chinese corporation are considering an option in which the co-founder and CEO Yves Guillemot will receive financial assistance from Tencent and fully buy out his company, and in return the Chinese will have influence in the Board of Directors and will be able to determine the vector of development of the publisher.
Reuters journalists say that Guillemot does not like this arrangement and is trying to find other ways out of the difficult situation. But, unlike the Chinese partner, he has less and less time, as numerous failures have seriously shaken the position of Ubisoft.
Negotiations are ongoing, and amid rumours of closer cooperation between Ubisoft and Tencent, the French publisher's share price has risen by 13%.
Ubisoft share price
As a reminder, as of April 2024, Tencent owns 9.2 per cent of Ubisoft's securities, while the Guimault brothers own 20.5 per cent.
Source: Reuters
