Ubisoft’s shares experienced a significant surge of more than 30% on Friday, in response to reports indicating that both Tencent and the Guillemot family are contemplating a potential buyout of the renowned video game maker. According to Bloomberg news, Tencent and the Guillemot family, who are currently minority stakeholders in Ubisoft, have been engaged in discussions to explore ways to stabilise the company’s position, especially after it witnessed a reduction of more than half in its market value over the course of this year. The shares escalated by 33.5% to reach approximately $15.57 on Friday, as reported by FactSet.
In response to inquiries, Ubisoft refrained from issuing any comments on the matter, and Tencent has not yet responded to requests seeking clarification or confirmation. The France-based Ubisoft is best known as the publisher behind the highly popular “Assassin’s Creed” franchise. The company faced a setback last month when its latest release, “Star Wars Outlaws”, fell short of expectations, leading to a decline in its shares to the lowest level in over a decade. Additionally, Ubisoft announced a delay in the launch of the latest instalment in the “Assassin’s Creed” series.
Yves Guillemot, the CEO of Ubisoft, acknowledged in a statement released last week that the company’s performance during the second quarter had not met their anticipated targets. The potential buyout discussions with Tencent and the Guillemot family come amid efforts to restore stability and value to Ubisoft in the face of recent challenges. Investors and industry analysts are closely monitoring these developments to ascertain the future trajectory of one of the prominent players in the video game industry.