After an initial report in October suggesting a possible takeover of Ubisoft, new light is emerging on this particularly hot topic for the French giant.
Following an initial report from Bloomberg on rumors of a Tencent takeover of Ubisoft, Reuters is adding fuel to the fire with new elements to be added to the file. As a reminder, the French giant commented on the matter, pointing out: “ Study his strategic options “. These were mainly aimed at privatizing the group thanks to the financial injection of the Chinese giant, while at the same time leaving control of the company to the Guillemot brothers.
Ubisoft shareholders have reportedly sat down at the negotiating table
Last September, Ubisoft showed alarming signs of poor financial health. Its stock market share was in free fall, particularly due to the commercial failure of Star Wars Outlaws. So much so that AJ Investments, an investor group in the French giant, issued an open letter calling on the company to privatize and calling for the Guillemot brothers at the top of the group to step down.
The following month, Bloomberg reported that something like this could happen thanks to Tencent, but still under the leadership of the Guillemot brothers. The two companies are currently in negotiations to determine the structure of this agreement. The Chinese giant, Ubisoft's second largest shareholder after the Guillemot family, would have demanded more decision-making power and greater control over the future of the group, to the detriment of other potential buyers, especially in terms of the distribution of funds to ensure a more profitable return on investment. Which obviously wouldn't sit well with the French giant's current managers.
Reuters tells us today that Ubisoft Entertainment SA shareholders have sat down at the negotiating table to take part in the discussion. The idea for now would still be to go into the private sector to escape the influences of the stock market. But giving Tencent a more dominant role remains a difficult pill to swallow. Regardless, Ubisoft's actions are currently suspended. They recorded an increase of 18% immediately after the publication of the Reuters report. The matter is therefore far from over and should be followed very closely.
Source: Reuters
