Ubisoft has responded to rumors that Tencent is considering a takeover.
A lot has changed at Ubisoft in the last twelve months. Following the November layoffs last year, the company redesigned its subscription service in January of this year. Things started to worsen after the announcement of Assassin’s Creed Shadows, which was highly criticized by the Japanese gaming communities. This was followed by the massive failure of Star Wars Outlaws.
Last month, Ubisoft announced that Assassin’s Creed Shadows would be delayed and that Star Wars Outlaws sales would be fewer than planned, causing a 19 percent plunge in Ubisoft shares. Right after the announcement, rumors circulated that Tencent might be considering acquiring Ubisoft.
Despite being quiet for the time being, they have finally responded to rumors that Tencent is considering a takeover, but nothing has been on the papers yet. According to a Monday statement by the company, the company “regularly reviews all its strategic options in the interest of its stakeholders and will inform the market if and when appropriate.”
Earlier, Bloomberg reported that the Guillemot family—the ones who established Ubisoft—and the Chinese gaming behemoth Tencent were exploring methods to “stabilize Ubisoft and bolster its value.” This latest announcement follows a similar story.
Due to the current stock market slump, Ubisoft is reportedly contemplating a move away from publicly traded and family ownership in favor of Tencent. The company’s recent financial struggles are well-known. Investors allegedly have been putting pressure on the firm to dive in an effort to reverse its stock price decline, which has fallen 54% this year.
In 2022, rumors surfaced that Tencent intended to increase its ownership in Ubisoft substantially; at the time, it owned roughly 9% of the firm through prior investments, which had helped fend off Vivendi. The company is reportedly exploring becoming private as one of its possibilities, as reported by Bloomberg. Besides its present 10% ownership in Ubisoft, Tencent controls 49.9% of Guillemot Brothers Ltd. According to the company, Ubisoft’s current priorities are open-world and Live Service games.
