Tencent, Guillemot family consider creating new venture involving certain Ubisoft assets
Tencent and the Guillemot family are evaluating which assets to include in the new entity
The Chinese technology firm and the Guillemot family are evaluating which assets to include in the new entity and will assess their valuations, the people said. A potential deal would allow Tencent to own a stake in the venture and gain more control over some of Ubisoft’s intellectual properties while bolstering its videogame business outside China, the people said.
Deliberations are ongoing and no final decisions have been made, the people said. A representative for Tencent declined to comment. A spokesperson for Ubisoft referred to the company’s Jan. 9 announcement, when it said it appointed advisers to review and pursue various options to boost value.
In October, Bloomberg News reported that Tencent and the Guillemot family were speaking with advisers about ways to stabilise Ubisoft and boost its value after its shares plunged. A buyout was one of the options under consideration, people familiar with the matter have said.
Tencent and the Guillemot family owned 25.4 per cent of Ubisoft’s share capital and 29.6 per cent of the voting rights as of March 31, according to Ubisoft’s annual report.
Ubisoft’s shares have slumped nearly 50 per cent over the past 12 months, giving the company a market value of about US$1.6 billion. In September, Ubisoft cut its outlook and said it would delay the release of its Assassin’s Creed Shadows game until February from November. Last week, it delayed the popular franchise’s release again to March 20.
