Guillemot Family, Tencent, Considers Buyout of Ubisoft After Market Value Dips

Ubisoft Buyout: Tencent Holdings and Ubisoft Entertainment SA’s founding Guillemot family are considering options including a potential buyout of the French video game developer.

This comes after the company lost more than half its market value this year, according to Bloomberg. 

Ubisoft Buyout To Reduce Its Market Value Dip

Guillemot Brothers and Tencent have been speaking with advisers to help bolster Ubisoft’s value, and stabilize the company, Bloomberg said, citing people familiar with the matter.

Ubisoft’s shares surged nearly 30% after the report of the buyout. 

The company had a market value of 1.39 billion euros ($1.52 billion), as of Thursday’s close.

Additionally, Ubisoft’s shares have fallen more than halved in value so far this year, underperforming those of rivals, as its recent releases fell short of expectations.

The company in September delayed the release of “Assassin’s Creed Shadows” by three months, and cut its net bookings guidance.

Also Read: Naspers Doubles Profit Thanks to Tencent and Online Shopping

Tencent, Guillemot Family Consideration Might Not Lead To A Buyout

According to Bloomberg, the considerations for the buyout are “at an early stage and there’s no certainty they will lead to a transaction.”

Tencent and the Guillemot family are also weighing all of their options at the moment, so a buyout isn’t guaranteed. That being said, it’s clear that something needs to be done.

Ubisoft is run by its founders, the Guillemot family, which owns 15% of the firm, followed by Chinese gaming giant Tencent which owns just under 10%, according to LSEG data.

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