Ubisoft and Tencent Could Be Joining Forces in a Big Way

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Lately, Ubisoft, the renowned French video game developer behind hits like ‘Assassin’s Creed’, has been grappling with financial difficulties. In an attempt to boost the company’s worth, the Guillemot family, Ubisoft’s founders, are considering various strategies. One potential approach includes negotiations with Tencent, a significant Chinese tech giant.

Discussions about launching a new business venture with some of Ubisoft’s properties have been underway since last December. Such an endeavor might increase Tencent’s control over Ubisoft and impact its day-to-day operations. Neither Ubisoft nor Tencent has publicly acknowledged these negotiations, but rumors indicate they are examining multiple options to improve Ubisoft’s financial stability.

In October 2024, shares of Ubisoft saw a substantial boost, climbing more than 30% after rumors surfaced about a potential acquisition by Tencent and the Guillemot family. This upward trend reflected investor enthusiasm towards the proposed partnership. However, Ubisoft has encountered hurdles, such as postponements in game launches and subpar performances of new games like ‘Star Wars Outlaws.’ These difficulties have played a role in the company’s decreasing market worth, leading to an examination of innovative business strategies.

Currently, the Guillemot family controls approximately 15% of Ubisoft’s shares, with Tencent owning slightly under 10%. By joining forces in a fresh partnership, these two entities plan to capitalize on their collective assets to bolster Ubisoft’s standing within the gaming market. This strategic alliance may also serve to deter potential hostile takeovers and establish a more robust framework for future expansion.

Keep in mind that these conversations are merely at the beginning, and as of now, nothing concrete has been decided. Ubisoft frequently assesses their strategies to ensure they benefit all parties involved. As new developments arise, they aim to share any substantial updates with the public.

To put it simply, discussions between the Guillemot family and Tencent could be a potential solution for Ubisoft’s current financial struggles. By potentially creating a new business partnership and integrating some of Ubisoft’s resources, they hope to boost the company’s worth and secure its future in the cut-throat gaming market.

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2025-01-15 17:14