Ubisoft shares rose by 30% on Friday. This jump follows news about a possible buyout. Tencent and the Guillemot family may join forces. Both own stakes in Ubisoft. The company lost over half its value this year. A report from Bloomberg sparked this interest. Tencent and the Guillemots seek to boost Ubisoft’s worth. They are looking at ways to take the firm private.
Ubisoft shares increased by 33.5% at market close. This gain marks the highest since the firm went public in 1996. Despite the rise, shares have fallen nearly 40% this year. Ubisoft’s market value is now about €1.8 billion. Tencent holds about 9.2% of shares. The Guillemot family has around 20.5%. Some shareholders want a sale or to take the firm private. They urge change after poor stock performance.
Discussions are early, and no deal is sure. Tencent and the Guillemots consider other options as well. Both firms chose not to comment on this matter. Talks are at a preliminary stage, and there is no guarantee of a deal: Tencent and the Guillemots are weighing other options. Neither company commented for this matter. Ubisoft is up against a lot. Just last month, shares fell to their lowest point in 10 years. The company cut its revenue forecast after weak sales. It delayed the release of Assassin’s Creed Shadows.
These problems were the fallout of Covid delays. Ubisoft had fallen behind on its release schedule. The company is now trying to right itself. Such is the firm’s paucity of hot properties that its investors are losing faith. Ubisoft also stood to benefit from Tencent’s interest: the Chinese firm is the dominant player in gaming in China. Tencent is the creator of hits such as Honor of Kings, and the firm aims to expand by making intelligent acquisitions.
Last year, Tencent bought a stake in Guillemot Brothers. This deal helped the family keep control of Ubisoft. Analysts saw this as a smart move to fend off buyers. Tencent’s stake stays under 10%, limiting its power.
Ubisoft’s leaders stay hopeful for future growth. CEO Yves Guillemot said the family remains open to talks. The company has options to explore despite current woes. Investors will watch these talks closely. A deal between Tencent and the Guillemots could change Ubisoft. Shareholders hope for a comeback as the gaming world shifts. Ubisoft seeks to reclaim its spot as a top firm. The coming weeks will be key for its plans.