According to a new report, Ubisoft’s family founders are trying to find funding to keep the company in good financial standing while simultaneously attempting to keep control of the firm’s future.
Reuters reports that the Guillemot family–which owns the largest stake in Ubisoft–is talking to Tencent and other financial partners to try to find a way to fund a “management-led buyout.”
CEO Yves Guillemot and his family members are keen to retain control of Ubisoft amid any such deal, and this has apparently been a sticking point in financing discussions. The report said Tencent is asking for a “greater say on future board decisions” in exchange for putting more money into Ubisoft. The report also said Tencent may not invest any further amount of money into Ubisoft.
The report went on to say Tencent wants to make a deal to help prevent any other firm from coming in to make a hostile takeover bid for Ubisoft. In 2017, Vivendi attempted a hostile takeover of Ubisoft. The French gaming giant successfully fought this off after striking deals with Tencent and a Canadian pension plan.
Tencent currently holds nearly 10% of Ubisoft stock. The Guillemot family owns 15%.
“We remain committed to making decisions in the best interests of all of our stakeholders,” Ubisoft said in a statement to Reuters. “In this context, as we have already indicated, the company is also reviewing all its strategic options.”
Earlier this week, Guillemot released a memo to staff that alluded to ongoing business talks about the company’s future. In announcing XDefiant’s shutdown and the closure of multiple studios resulting in hundreds of layoffs, Guillemot said, “I am working tirelessly with my team to identify the best solutions so we can maintain control of our destiny.”
This latest development follows on from a story in October that claimed Ubisoft and Tencent were talking about multiple options, including a total buyout. At the time, Ubisoft acknowledged that discussions were underway as the company looked to find a deal that would appease shareholders. That report said it was early days for any such talks, and this new report doesn’t mention anything being close to a done deal.
Minority shareholder and hedge fund AJ Investments published an open letter in September asking Ubisoft to go private and change its strategy.
In September, Ubisoft’s shares sunk to their lowest since 2015, falling by 12.6% after Star Wars Outlaws released to lower-than-expected sales. Ubisoft also delayed Assassin’s Creed Shadows from November 15 to February 14, 2025, taking the feedback it learned from the release of Star Wars Outlaws.
Ubisoft’s share price surged by as much as 16% today, December 6, in the wake of the Reuters report, but remains down more than 70% over the past five years.
