Chinese tech giant Tencent is rumored to be considering buying French video game publisher Ubisoft, sending the company's shares soaring. Tencent currently owns 9.2% of Ubisoft, but Bloomberg sources say the company is interested in expanding its influence and is willing to increase its stake or even buy Ubisoft outright.
The rumor comes as Ubisoft's market value has recently fallen following the failure of the highly anticipated Star Wars Outlaws and the delay of Assassin's Creed Shadows. The company's market cap has fallen 54% this year, prompting it to seek solutions to stabilize its position.
The potential deal is being discussed with Guillemot Brothers Ltd., founded by the Guillemot family, which has long been closely associated with Ubisoft. Ubisoft co-founder Yves Guillemot continues to lead the company, and the family firm controls about 20.5% of the shares. Tencent and Guillemot Brothers Ltd. are actively consulting with advisers to consider various exit strategies, including the possibility of a joint buyout of the company with the aim of taking it private.
On the back of this news, Ubisoft shares rose by 10%, after which trading was temporarily suspended due to a sharp jump. Financial analysts are assessing the possibility of a deal, pointing to Tencent’s interest in global expansion of its presence in the gaming industry.
Also worth noting in this context is the statement of the Slovak hedge fund AJ Investment, which owns 1% of Ubisoft shares. The fund is calling on the company’s management to consider the possibility of selling the studio to private investors and the resignation of Yves Guillemot, which indicates growing pressure on the management of the French publisher.
It is not yet clear whether Tencent will become the majority shareholder of Ubisoft or limit itself to expanding its stake, but this news has already had a significant impact on the market, attracting the attention of investors and analysts to the future of one of the largest gaming studios in Europe.
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