Business
Tencent and Guillemot Family Mull Over Ubisoft Buyout amid Falling Shares and Underwhelming Sales
Tencent and the Guillemot family are reportedly contemplating a takeover of Assassin's Creed's producer, Ubisoft. Ubisoft's shares, where Tencent holds a direct investment, have experienced a decline of roughly 40 percent this year due to sales underperforming expectations.
Ubisoft's stocks have seen a significant decrease of around 40% this year, leading to a market value of the company standing at approximately €1.8 billion, equivalent to US$2 billion. As of the end of April, Tencent had ownership of 9.2% of Ubisoft's net voting rights, as per the company's most recent annual report. Meanwhile, the Guillemot family controlled roughly 20.5% of the voting rights.
A few minority investors, such as AJ Investments, have been advocating for Ubisoft's privatization or its sale to a strategic investor in light of the drastic drop in stock value.
Discussions are still in their initial phase and it's uncertain if they will result in a deal. Both Tencent and the Guillemot family are also exploring other options, as per the sources.
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