Reports Suggest Tencent, Guillemot Family May Privatize Ubisoft to Save It

Ubisoft is experiencing a hard phase. For the first time in nearly a decade, the video game producer has seen a significant fall in its share prices, losing more than 50% of its market value. With the underperformance of many of its major games, this downward spiral isn’t entirely unexpected but that doesn’t make it any less damaging.

The situation has deteriorated to such an extent that a minority investor has suggested either privatizing the company or selling it. What’s even more interesting is that a report published by Bloomberg suggests that Tencent, a company that owns 10% of Ubisoft, and the major owner Guillemot Brothers Limited, might be thinking along the same lines.

Nevertheless, these possibilities are not the only ones on the table, as both entities are in discussion with consultants trying to figure out how to salvage the situation. Given Tencent’s track record, it wouldn’t be shocking if they decide to fully acquire the company. That would put them in a situation where one might question if they plan to maintain the same hands-off approach that they historically have with other acquisitions.