Tencent and the Guillemot family are reportedly considering taking Ubisoft private
Tencent and Ubisoft founders the Guillemot family are reportedly considering teaming up to take the company private, after it lost more than half its market value this year.
According to Bloomberg sources, the Chinese conglomerate – which already owns around 10% of Ubisoft – and Guillemot Brothers Ltd have been speaking with advisers to explore ways to stabilize Ubisoft.
One of the possibilities discussed would involve teaming up to take Ubisoft private, it’s claimed, though talks are said to be at an early stage, and there’s no certainty they will lead to action.
Tencent and the Guillemot family are also considering other alternatives, according to Bloomberg.
Last month, Ubisoft‘s share price dropped to its lowest point in nearly 11 years. The most recent dips followed Ubisoft’s announcement that it had delayed Assassin’s Creed Shadows, and the disappointing launch performance of Star Wars Outlaws.
Earlier in September, a minority investor called on Ubioft’s management to take the company private or let it be sold to a strategic investor.
Hedge fund AJ Investments published an open letter calling for strategic and structural changes at Ubisoft.
It urged the board to consider taking the company private, “implement a comprehensive cost reduction program and optimize staffing levels to be more comparable with industry leaders,” increase its focus on core IPs, and consider replacing current CEO Yves Guillemot.
Slovakia-based AJ Investments holds less than 1% in Ubisoft.
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