Ubisoft, the French video game company known for titles like ‘Assassin’s Creed’, has been facing financial challenges recently. In response, the Guillemot family, who founded Ubisoft, is exploring options to enhance the company’s value. One such option involves discussions with Tencent, a major Chinese technology firm.
These talks have been ongoing since December, focusing on creating a new venture that includes some of Ubisoft’s assets. This move could potentially give Tencent a larger stake in Ubisoft and more influence over its operations. While neither party has officially confirmed these discussions, reports suggest that they are considering various strategies to stabilize Ubisoft’s financial situation.
In October 2024, Ubisoft’s shares experienced a significant increase, rising over 30% following reports of a potential buyout by Tencent and the Guillemot family. This surge indicated investor optimism about the possible collaboration. However, Ubisoft has faced setbacks, including delays in game releases and underperformance of new titles like ‘Star Wars Outlaws.’ These challenges have contributed to a decline in the company’s market value, prompting the exploration of new strategic options.
The Guillemot family currently holds about 15% of Ubisoft, while Tencent owns just under 10%. By forming a new venture, both parties aim to leverage their combined resources to strengthen Ubisoft’s position in the gaming industry. This collaboration could also help prevent hostile takeovers and provide a more stable foundation for future growth.
It’s important to note that these discussions are still in the early stages, and no official decisions have been made. Ubisoft has stated that it regularly reviews its strategic options to serve the best interests of its stakeholders. As the situation develops, the company plans to keep the market informed about any significant changes.
In summary, the Guillemot family’s talks with Tencent represent a potential strategy to address Ubisoft’s recent financial difficulties. By possibly forming a new venture and incorporating some of Ubisoft’s assets, they aim to enhance the company’s value and ensure its long-term success in the competitive gaming industry.
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Desiderius_S on January 15th, 2025 at 15:22 UTC »
"Or in a small way. Or in no way" 'Journalists' when they haven't posted anything in a while but still have to write something to get paid. 'News is there is no news' the article.
Sabbathius on January 15th, 2025 at 14:44 UTC »
The sad thing is, I think Ubisoft is still capable. I very much liked The Division series, to me it's as good or better than Diablo or Destiny. I thought Immortals: Fenyx Rising had childish writing, but the gameplay and puzzles were very well done, especially the way they incorporated the limited-range gliding mechanics into them.
Even Assassin' Creeds aren't horrific, they just need to tone down the bloat, and/or just write them better. The boat of Valhalla could turn into magic if every side quest was written with the same thought and quality as Witcher 3's side quests.
They're always one step away, and haven't really managed to drag themselves across the finish line, not for well over a decade now. They just keep shotting themselves in the foot when they see the finish line, for some reason.
rjmacready on January 15th, 2025 at 14:08 UTC »
With the help of Tencent, Ubisoft may be poised to shatter that floor and reach all new lows!