Ubisoft is reportedly continuing talks with the Chinese tech giant Tencent about a possible buyout that could lead to the privatization of the company, reports Reuters. The move will allow the French publisher, known for series such as Assassin’s Creed, Far Cry and Rayman, to regain control of the company from shareholders.
According to the report, Ubisoft’s founders, the Guillemot family, are seeking a deal that would allow them maintain control of the company. However, Tencent, which currently owns about 10% of Ubisoft shares, is interested in greater influence and a stronger position in deciding the company’s future. Tencent’s 10% stake makes it Ubisoft’s second-largest shareholder.
News of talks between Ubisoft and Tencent sent Ubisoft’s share price up 14%, indicating strong investor reaction. A Ubisoft representative commented on the situation as follows: “We remain committed to making decisions that are in the best interests of all our stakeholders. In this context, the company is simultaneously reviewing all its strategic options.”
Negotiations on the buyout are taking place after difficult yearduring which Ubisoft made three layoffs. He also lost other employees who left voluntarily. And he had to deal with weak sales of the anticipated action-adventure film. Star Wars Outlawswhich, in the company’s opinion, was not in line with business assumptions, and the postponement Assassin’s Creed Shadows until February/February 2025. To make matters worse, development on the failed online shooter was announced this week. XDefiant and the release of another 277 people. Not to mention the scandals and accusations.
If privatized, Tencent will be able to increase its influence in the world of AAA games, and Ubisoft will have more flexibility in choosing its strategy. However, negotiations are still ongoing and their outcome is unclear.
Source :Indian TV
