Tencent and Guillemot Family in talks over Ubisoft's buyout after stock decline

Ubisoft hasn't particularly had a good time recently, with the company's next big game - Assassin's Creed Shadows, delayed to February 2025 after the press previews got canceled. Prior to that, the company's next supposed money-maker, Star Wars: Outlaws, also didn't take off quite the way the company hoped it would - bringing Ubisoft's share down to an all-time low in the last 10 years. Now, as per latest reports from Bloomberg, Tencent Holdings Ltd. and Ubisoft Entertainment SA’s Guillemot family are exploring a potential buyout of Ubisoft. 

Tencent currently holds 9.2% of Ubisoft’s voting rights, while the Guillemot family owns 20.5%. Guillemot Brothers Ltd is a company run by the family of the same name, some of which founded Ubisoft in 1986 – including the publisher's long-serving CEO Yves Guillemot. With the stock value at a low, some investors, including AJ Investments, are advocating for a take-private deal or a sale to a strategic buyer. However, there is still no guarantee of a final transaction. Spokespeople for Ubisoft and Tencent have not commented on the same.

In 2022, Tencent purchased a 49.9% stake in the Guillemot Brothers holding company, giving the Guillemot family control over Ubisoft’s governance while limiting Tencent’s operational influence. The deal capped Tencent’s voting power at under 10% within Ubisoft and prevented the company from selling its shares for five years, giving the Guillemot family the right of first refusal if Tencent decides to sell afterward. This partnership was designed to protect Ubisoft from external acquisition attempts, letting the family maintain control while working with Tencent. However, given Ubisoft's current challenges, further developments regarding the company's future may emerge soon.