[Hardware] Rumor: Ubisoft Considers Complicated Tencent Buyout After Strenuous 2024

[TheWild ™]

It's no secret that Ubisoft hasn't had the best year, with the gaming giant having had to shut down multiple live-service and single-player games this year as a result of disappointing player counts and sales figures. Now, according to a series of rumors, Ubisoft is in talks with Chinese conglomerate Tencent with the intention of a buy-out. Curiously, though, Yves Guillemot, who currently sits as CEO of Ubisoft, wants to sell at least some of the Guillemot family's shares to Tencent, effectively giving Tencent a controlling stake in Ubisoft, but the Guillemot family wants to do so without losing control of the company it helped found.

According to Reuters, inside sources claim that the Guillemot family, who are the founding shareholders and currently have a controlling stake in Ubisoft, would like to maintain a controlling position in the company after whatever potential buyout deal is being discussed. Apparently, the Guillemot Family's desire for continued control has thus far been a sticking point for Tencent, who has as yet opted not increase its stake in the French game developer and publisher, instead holding out for a more favorable deal. Tencent already has around a 10% stake in Ubisoft, but the inside sources claim that Tencent wants greater control over the company before agreeing to a buyout of Guillemot shares.

 

The news of a potential buyout deal comes the same week Ubisoft decided to shut down its fledgling F3P FPS, XDefiant, and lay off over 250 staff members from the team that developed the game. That's not the first time Ubisoft has faced layoffs or commercial hardships this year, earlier shutting down Prince of Persia The Lost Crown due to its commercial "failure."

Tencent is a massive Chinese game developer and conglomerate that has made a big push into the Western gaming scene in recent years, whether by buying out game studios entirely, as was the case with Warframe developer, Digital Extremes, and Riot Games, or with more subtle moves, like its almost 10% stake in Ubisoft and 35% ownership of Epic Games.

https://www.techpowerup.com/329586/rumor-ubisoft-considers-complicated-tencent-buyout-after-strenuous-2024