Ubisoft and Tencent: A Potential Partnership in Focus

The French video game developer Ubisoft Entertainment is possibly facing a strategic shift amid significant stock price losses. The Guillemot family, the founders of Ubisoft, along with Chinese technology firm Tencent, are considering privatizing the publicly listed company with the help of advisors. Ubisoft's stock price plummeted by 54 percent this year, giving the company a current market value of around 1.4 billion euros. As of the end of April, Tencent held 9.2 percent of the voting rights, while the Guillemot family held 20.5 percent. In light of these developments, some minority shareholders, such as AJ Investments, are urging the company to either be sold to a strategic investor or taken private. A final decision on Ubisoft's future direction has not yet been made. The discussions are in an early stage, and it remains unclear whether a transaction will occur. The company's recent challenges include disappointing sales figures and delays, such as with the release of "Assassin's Creed Shadows." These setbacks are due to production difficulties during the pandemic, which affected the relaunch of new game offerings. In 2022, private equity firms such as Blackstone and KKR had already signaled interest in acquisitions. However, the Guillemot family ultimately rejected partner offers and instead cooperated with Tencent. The goal was to secure their control over the company, even though the collaboration granted the Chinese firm a say without veto rights.