Ubisoft, the French video game giant, is facing a period of turmoil. The company’s stock has taken a significant hit in recent months, dropping over 50%, due to a series of setbacks. These include underwhelming financial results, the delay of the highly anticipated Assassin’s Creed Shadows release, and disappointing sales figures for new game releases.
In the face of these challenges, Ubisoft’s primary stakeholder, the Guillemot family, is exploring various options to address the situation. According to sources at Bloomberg, one such plan involves taking the company private. The Guillemot family, through their company Guillemot Bros. Limited, currently holds a majority stake in Ubisoft. Back in 2022, Tencent, the Chinese tech giant, acquired a 49.9% stake in Guillemot Bros. for €300 million and also purchased 9.9% of Ubisoft’s stock. While Tencent now holds a significant share, the Guillemot family maintains control over Guillemot Bros. and, importantly, holds the power to make decisions regarding Ubisoft’s future.
The agreement between the Guillemot family and Tencent restricts Tencent from increasing its stake in Ubisoft until 2030 and prohibits them from selling their Ubisoft shares before 2027. This ensures that Tencent cannot unilaterally force a hostile takeover.
Recent reports suggest that the Guillemot family, possessing 20.5% of Ubisoft’s voting rights, might join forces with Tencent (holding 9.2% of voting rights) to make an offer to buy out all existing shareholders of Ubisoft. This move would aim to take Ubisoft private and remove it from the Euronext Paris Exchange.
While Ubisoft has yet to make any official announcements, the news of a potential private acquisition has sent shockwaves through the gaming industry. Ubisoft’s stock has rallied significantly in response, surging by 33% to €14.20. The future of Ubisoft remains uncertain, but the possibility of a private takeover by the Guillemot family and Tencent presents an intriguing and potentially impactful development for the gaming industry.
