Ubisoft Shares Soar on Reports of Potential Tencent-Guillemot Family Buyout

Shares of Ubisoft Entertainment, the French video game publisher known for popular franchises like “Assassin’s Creed,” surged more than 30% on Friday following reports of a potential buyout by Chinese tech giant Tencent and the Guillemot family.

Bloomberg reported that Tencent, already a minority shareholder in Ubisoft, and the Guillemot family, which founded Ubisoft, have been discussing options to stabilize the company after a sharp decline in its market value this year.

The news sent Ubisoft’s shares soaring 33.5% to close at $15.57, according to FactSet. The company’s stock had plummeted to a decade-low last month after the release of its latest title, “Star Wars Outlaws,” disappointed investors and the company announced a delay for the next installment of its flagship “Assassin’s Creed” franchise.

Ubisoft has declined to comment on the buyout speculation, and Tencent has not yet responded to requests for comment.

This potential buyout comes at a challenging time for Ubisoft. CEO Yves Guillemot recently acknowledged that the company’s second-quarter performance fell short of expectations, reflecting broader difficulties within the video game industry as consumer spending tightens and competition intensifies.

Key Takeaways:

• Ubisoft’s shares surged over 30% on Friday following reports of a potential buyout by Tencent and the Guillemot family.
• Tencent and the Guillemot family are minority stakeholders in Ubisoft.
• The company’s stock has struggled this year, driven by disappointing game releases and a challenging market environment.

The possibility of a buyout offers a potential lifeline for Ubisoft, providing a path to stability and potentially unlocking new resources for growth. The outcome of these discussions will be closely watched by investors and industry observers as they assess the implications for Ubisoft’s future and the broader video game landscape.