Ubisoft and Tencent considering buyout, taking the company private - report
Assassin's freed.
Tencent and Assassin's Creed maker Ubisoft are considering a buyout.
That's according to a new report from Bloomberg, which noted the video game developer had lost more than half its market value over the year.
"The Chinese tech company and Guillemot Brothers Ltd have been speaking with advisers to help explore ways to stabilise Ubisoft and bolster its value," Bloomberg's report reads.
Those familiar with the situation said one possibility currently being discussed is "teaming up to take the company private".
Word of a buyout follows an open letter from an Ubisoft investor to the company last month, which expressed their "deep dissatisfaction" with its performance and strategic direction. The investor urged the board to consider taking the company private, describing Ubisoft as "a great company" that is "deeply undervalued" due to mismanagement from the Guillemot family and Tencent.
In 2022, it was revealed Tencent had a 49.9 percent stake in Guillemot Bros. Separately, at the end of April, Tencent owned 9.2 percent of Ubisoft's net voting rights.
Bloomberg noted any buyout considerations are still in the early stages. It is not certain these discussions will ultimately lead to a transaction taking place, with Tencent and the Guillemot family also said to be looking into other options at this time.
Ubisoft has declined to comment on today's report.
Last month, Ubisoft announced its upcoming release Assassin's Creed Shadows will now debut on 14th February 2025, instead of its previously planned November arrival.
Ubisoft ultimately agreed to delay Shadows after seeing "softer than expected" sales for Star Wars Outlaws, which has now reportedly just passed the 1m sales mark after launching on 30th August.