Ubisoft’s Guillemot family and shareholder Tencent are reportedly considering a joint effort to take the company private. This move comes after a string of high-profile game flops and a 54% decline in Ubisoft’s share price this year.
Exploratory Talks
According to Bloomberg, both parties are consulting advisers to stabilize Ubisoft. However, these talks may not lead to a buyout, and other options are being explored. Ubisoft declined to comment.
Shareholder Stake
The Guillemot family holds 20% of Ubisoft’s shares, while Tencent owns 9%. The news has sent Ubisoft’s shares soaring 26.33%.
Recent Struggles
Ubisoft has faced significant challenges, including:
– Disappointing sales of XDefiant and Star Wars Outlaws
– Delayed Assassin’s Creed Shadows release to 2025
– Staff strike planned for later this month
– Poor second-quarter performance
Executive Response
Ubisoft CEO Yves Guillemot acknowledged the company’s struggles in a note to investors, promising a review to improve execution and addressing cultural concerns surrounding Star Wars Outlaws and Assassin’s Creed Shadows.
New Distribution Strategy
Ubisoft has abandoned Epic Games Store timed exclusivity, opting for day-one launches on Steam to boost flagging sales.
Ubisoft’s Founding Family and Tencent Explore Take-Private Deal Amidst Company Struggles
