Ubisoft Considers Tencent Report, Guillemot Family Considers Investing.com Takeover Offer

Investing.com — Tencent Holdings (OTC:) Ltd. and the founding Guillemot family of Ubisoft Entertainment SA are exploring several options, including a potential purchase of the French video game developer, after its market value decreased more. over half of this year.

Both Tencent and Guillemot Brothers Ltd. have held talks with advisers to evaluate ways to stabilize Ubisoft and improve its value, Bloomberg said, citing sources familiar with the matter.

Sources told the publication that one of the strategies being considered is a joint effort to take the company private.

However, the talks are still in the early stages and there is no guarantee that they will lead to a deal.

Shares of Ubisoft jumped more than 29% on the news.

According to the latest figures, Tencent controls 9.2% of Ubisoft’s voting rights, while the Guillemot family owns about 20.5%.

This year, Ubisoft’s shares have fallen 54 percent, leaving its market capitalization at about 1.4 billion euros ($1.5 billion). The sharp decline in the stock has led some minority shareholders, such as AJ Investments, to push for a potential sale or take-private deal.

Despite these efforts, both Tencent and the Guillemot family are considering other options, according to Bloomberg’s sources.

Last month, Ubisoft’s stock hit its lowest level in more than a decade after the company decided to cut its outlook due to disappointing sales and delays with the highly anticipated game “Assassin’s Creed Shadows.”