A recent report indicates that Ubisoft's founding family is actively seeking funding to maintain the company's financial stability while striving to retain control over its future direction. According to Reuters, the Guillemot family, which holds the largest stake in Ubisoft, is in discussions with Tencent and other financial entities to explore options for a "management-led buyout." CEO Yves Guillemot and his family are determined to maintain their control over Ubisoft, a condition that has reportedly complicated funding negotiations.
The report suggests that Tencent is requesting a more significant role in future board decisions in exchange for additional investment in Ubisoft. However, there is also speculation that Tencent may not proceed with further investment. The report further reveals that Tencent aims to secure a deal that would prevent any other company from launching a hostile takeover bid for Ubisoft. This strategy echoes the actions taken in 2017 when Vivendi attempted a hostile takeover, which Ubisoft successfully thwarted by partnering with Tencent and a Canadian pension plan.
Currently, Tencent holds nearly 10% of Ubisoft's stock, while the Guillemot family owns 15%. In a statement to Reuters, Ubisoft affirmed, "We remain committed to making decisions in the best interests of all of our stakeholders." The company also noted that it is "reviewing all its strategic options." Earlier this week, Guillemot communicated with staff, hinting at ongoing discussions about the company's future direction. Amid announcements of the shutdown of XDefiant and the closure of multiple studios, resulting in hundreds of layoffs, Guillemot expressed his dedication to finding the best solutions to maintain control over Ubisoft's destiny.
This development follows a previous report in October claiming that Ubisoft and Tencent were exploring various options, including a complete buyout. At that time, Ubisoft confirmed ongoing discussions aimed at satisfying shareholders. However, the latest report suggests that no definitive deal is imminent. Additionally, minority shareholder AJ Investments called for Ubisoft to go private and change its strategy in an open letter published in September.
In September, Ubisoft's shares plummeted to their lowest level since 2015, dropping by 12.6% following the release of Star Wars Outlaws, which underperformed expectations. Ubisoft also postponed the release of Assassin's Creed Shadows from November 15 to February 14, 2025, based on feedback from the Star Wars Outlaws launch. Despite today's surge of up to 16% in Ubisoft's share price following the Reuters report, the stock remains down by over 70% over the past five years.
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