Tencent to acquire Ubisoft? Here is what the Assassin's Creed maker says
Oct 8, 2024, 18:51 IST
Ubisoft, the French gaming giant behind popular titles like Assassin’s Creed and Far Cry, has reacted to rumours of a possible buyout by PUBG maker Tencent. However, the company’s response, released in a cryptic statement on Monday, left fans and industry insiders with more questions than answers.
A Bloomberg report had earlier said that Tencent might be exploring the possibility of teaming up with Ubisoft’s founding family, the Guillemots, to take the company private. Sources close to the situation had told the publication that talks were ongoing, with both parties consulting advisors. But for now, Ubisoft is keeping its cards close to its chest.
According to a report in The Verge,Ubisoftsaid in a statement that it “regularly reviews all its strategic options in the interest of its stakeholders and will inform the market if and when appropriate.” The company also reiterated its commitment to its current strategy, which focuses on two key areas: Open World Adventures and GaaS-native (Games as a Service) experiences. And that was it—just a couple of lines, leaving the gaming community hungry for more details.
The Guillemot-Tencent connection
While nothing is confirmed, the possibility of Tencent teaming up with the Guillemot family to buy Ubisoft makes a lot of sense. After all, Yves Guillemot, the current CEO, and his family have a deep, personal stake in the company, which they founded decades ago. Tencent, on the other hand, has a 10% stake in Ubisoft and also owns nearly half of Guillemot Brothers Ltd, the family’s holding company.
According to a report in wccftech, Tencent is interested in stabilising Ubisoft, which has had a rough few months. The company’s shares plunged by 19% last month, following disappointing sales of Star Wars Outlaws and delays to highly anticipated releases like Assassin’s Creed Shadows. For a company with Ubisoft’s pedigree, these setbacks have shaken investor confidence, and Tencent reportedly sees an opportunity to step in, boost its value, and potentially reshape the company’s future.
PUBG maker Tencent to acquire Ubisoft? Here is what the company says
As mentioned already, if Tencent were to push forward with a buyout and take Ubisoft private, the move would not be all that surprising. There have been rumours for some time that Ubisoft has been considering such a step, especially as competition heats up in the gaming world and the company struggles to regain its footing.
But going private could come with some major consequences. According to the wccftech report, a buyout could trigger significant changes at Ubisoft’s leadership level, including a new CEO and possible layoffs. The company has already seen its fair share of cuts recently, with layoffs hitting its IT and special effects teams, and more could be on the way if a takeover leads to restructuring.
But for now, Ubisoft is staying tight-lipped. Fans, investors, and industry watchers will have to wait and watch for what comes next, especially with the company hinting that any updates will only come “if and when appropriate.” One thing’s for sure—whatever happens next, it’s likely to have a major impact on the future of the gaming giant.
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A Bloomberg report had earlier said that Tencent might be exploring the possibility of teaming up with Ubisoft’s founding family, the Guillemots, to take the company private. Sources close to the situation had told the publication that talks were ongoing, with both parties consulting advisors. But for now, Ubisoft is keeping its cards close to its chest.
According to a report in The Verge,Ubisoftsaid in a statement that it “regularly reviews all its strategic options in the interest of its stakeholders and will inform the market if and when appropriate.” The company also reiterated its commitment to its current strategy, which focuses on two key areas: Open World Adventures and GaaS-native (Games as a Service) experiences. And that was it—just a couple of lines, leaving the gaming community hungry for more details.
The Guillemot-Tencent connection
While nothing is confirmed, the possibility of Tencent teaming up with the Guillemot family to buy Ubisoft makes a lot of sense. After all, Yves Guillemot, the current CEO, and his family have a deep, personal stake in the company, which they founded decades ago. Tencent, on the other hand, has a 10% stake in Ubisoft and also owns nearly half of Guillemot Brothers Ltd, the family’s holding company.
According to a report in wccftech, Tencent is interested in stabilising Ubisoft, which has had a rough few months. The company’s shares plunged by 19% last month, following disappointing sales of Star Wars Outlaws and delays to highly anticipated releases like Assassin’s Creed Shadows. For a company with Ubisoft’s pedigree, these setbacks have shaken investor confidence, and Tencent reportedly sees an opportunity to step in, boost its value, and potentially reshape the company’s future.
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PUBG maker Tencent to acquire Ubisoft? Here is what the company says
As mentioned already, if Tencent were to push forward with a buyout and take Ubisoft private, the move would not be all that surprising. There have been rumours for some time that Ubisoft has been considering such a step, especially as competition heats up in the gaming world and the company struggles to regain its footing.
But going private could come with some major consequences. According to the wccftech report, a buyout could trigger significant changes at Ubisoft’s leadership level, including a new CEO and possible layoffs. The company has already seen its fair share of cuts recently, with layoffs hitting its IT and special effects teams, and more could be on the way if a takeover leads to restructuring.
But for now, Ubisoft is staying tight-lipped. Fans, investors, and industry watchers will have to wait and watch for what comes next, especially with the company hinting that any updates will only come “if and when appropriate.” One thing’s for sure—whatever happens next, it’s likely to have a major impact on the future of the gaming giant.