Ubisoft, the publisher behind Assassin’s Creed, Far Cry, and Rainbow Six Siege, has had a turbulent year full of studio closures, mass layoffs, and game shutdowns. Its next title, Assassin’s Creed Shadows, was pushed back to 2025, and Star Wars Outlaws didn’t hit sales goals.
Ubisoft Considers Tencent Buyout Amid XDefiant Shutdown and Layoffs, Guillemot Family’s Control at Stake
Ubisoft shareholders are considering a buyout that would allow the founding family the Guillemots to retain ownership, so reports Reuters. Ubisoft’s largest shareholder, the Guillemot family, is reportedly in talks with Tencent and other investors to raise the funds required for a management buyout. Shares of Tencent, which is a 10% stakeholder and the second-largest shareholder, remain as yet wholly undecided on Bayar funding.
Tencent’s reluctance is also due to its demand for greater influence over decisions on Ubisoft’s board, including how cash flows are allocated, in return for financing. While the Guillemot family has yet to accept these new terms, it seems Tencent is content to bide its time. Tencent and a representative of the Guillemot family both declined to comment, and a Ubisoft spokesperson reiterated the company’s pledge to make decisions in the best interests of stakeholders and evaluate all strategic options.
Ubisoft’s stock dropped to its lowest level in a decade this September following multiple announcements that discussed its underperforming games. Along with the Assassin’s Creed Shadows delay, Ubisoft announced its return to Steam after spending time as an Epic Store exclusive, and Star Wars Outlaws just launched on Valve’s storefront.
The news comes hot on the heels of Ubisoft announcing that it will no longer continue development on XDefiant, its Call of Duty competitor, and close its San Francisco and Osaka studios and downsize in Sydney, with the loss of between 275 to 277 jobs. In spite of this, Ubisoft’s stocks rose by 12.52% on December 6, in light of rumored discussions of a Tencent buyout.
FAQs
Why is Ubisoft considering a Tencent buyout?
Ubisoft is struggling financially, and the Guillemot family is exploring a buyout while maintaining control.
What happened to Ubisoft’s games and studios?
Ubisoft delayed games, shut down XDefiant, and laid off hundreds of employees.
