LOS ANGELES — Shares of Ubisoft jumped more than 30% Friday, following reports that Tencent and the Guillemot family are considering a buyout of the video game maker.
Bloomberg news reported that Tencent and Guillemot family — minority stakeholders in Ubisoft — have been discussing ways to stabilize the company after it lost more than half its market value this year. Shares surged 33.5% to about $15.57 Friday, according to FactSet.
Ubisoft declined to comment. Tencent did not immediately respond to a request for comment.
France-based Ubisoft is the publisher behind the well-known franchise “Assassin’s Creed.” Ubisoft’s shares fell last month to their lowest point in more than a decade after its latest title “Star Wars Outlaws” underperformed and the company announced that it would delay the latest “Assassin’s Creed” game.
Yves Guillemot, Ubisoft’s CEO, said in a statement last week that the company’s “second quarter performance fell short of our expectations.”
French video game company Ubisoft’s stock saw a significant rise recently as reports surfaced that Chinese tech giant Tencent and the Guillemot family, who founded Ubisoft, are considering a potential buyout of the company. This news has sent shockwaves through the gaming industry and has investors buzzing about the potential implications of such a deal.
Ubisoft, known for popular franchises such as Assassin’s Creed, Far Cry, and Just Dance, has been a major player in the gaming industry for decades. The company has a strong track record of producing successful games and has a loyal fan base around the world. However, in recent years, Ubisoft has faced challenges such as allegations of toxic workplace culture and underperformance of some of its game releases.
The news of Tencent and the Guillemot family potentially considering a buyout of Ubisoft has sparked speculation about what this could mean for the future of the company. Tencent, one of the largest gaming companies in the world, has been expanding its presence in the global gaming market and has made several high-profile acquisitions in recent years. A potential buyout of Ubisoft could further solidify Tencent’s position as a major player in the industry.
On the other hand, the Guillemot family, who currently holds a significant stake in Ubisoft, has been vocal about their commitment to the company and its long-term success. A buyout by Tencent could potentially lead to changes in the company’s leadership and direction, which could have both positive and negative implications for Ubisoft and its employees.
Investors have reacted positively to the news of a potential buyout, with Ubisoft’s stock price rising significantly in response. However, there are still many uncertainties surrounding the potential deal, including the terms of the buyout and how it would impact Ubisoft’s operations and future game releases.
Overall, the news of Tencent and the Guillemot family considering a buyout of Ubisoft has generated a great deal of interest and speculation within the gaming industry. It remains to be seen how this potential deal will unfold and what it could mean for the future of one of the biggest players in the gaming world.
