Tech Desk 
Oct 05, 2024
Ubisoft is currently undergoing severe issues due to poor performance and it has been reportedly suggested for a potential buyout, according to Bloomberg.
The news came ahead of Ubisoft receiving excessive criticism from gaming enthusiasts and investors alike and a great reduction in stock value.
A few shareholders have been constantly pushing the company for a few modifications for quite a while now, but other details are still under wraps. Now, it looks like Tencent, a Chinese tech manufacturer, and the Guillemot family, Ubisoft’s founders, are finding several ways to stabilise the company.
Considering Ubisoft’s recent struggles, a report from Bloomberg suggested potential combined efforts by Tencent and the Guillemot brother to buyout Ubisoft and eliminate it from the listings of the public stock exchange.
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Is Tencent buying Ubisoft?
Tencent and the Guillemot family initially consulted with counsellors to explore the feasibility of obtaining the company. However, they are currently in the rudimentary stage of their discussion with no reports of a successful deal yet.
Furthermore, Ubisoft went private, the progress prompted by a significant decrease in share price after the launch of Star Wars Outlaws. Ubisoft’s current market capitalisation is at $1.5 billion, with shares declining by 54% in 2024.
The company’s stock was reduced to a ten-year low because of least expected sales of Star Wars Outlaws, and due to this, which led the game's director to express disappointment in its reception.
Guillemot Brothers LTD has played a pivotal role in founding Ubisoft. GBL holds 20% of Ubisoft’s voting rights, whereas Tencent holdings were 9.2% in 2022 and it even surged its stake in GBL, which increased Tencent’s investment in Ubisoft.
