Ubisoft Shareholders Reportedly Discussing Buyout Terms
In the wake of ongoing discussions regarding a potential buyout, Ubisoft shareholders are reportedly still negotiating terms two months after initial rumors surfaced about the Guillemot family and Tencent planning a buyout. A significant point of contention is the Guillemot family's desire to retain control over the company post-acquisition.
Tencent, already the second-largest shareholder in Ubisoft, has yet to confirm whether it will increase its stake to participate in the buyout proposal. The Chinese conglomerate aims to gain more influence over board decisions, particularly concerning cash flow distribution, should it finance the deal. However, the Guillemots have not agreed to these terms. Additionally, Tencent is keen to prevent any third-party takeover attempts, leading them to adopt a wait-and-see approach regarding the Guillemot family's decision on the proposal.
An Ubisoft spokesperson commented on the situation, stating:
We remain committed to making decisions in the best interests of all of our stakeholders. In this context, as we have already indicated, the Company is also reviewing all its strategic options.
The Guillemot family's long-standing goal of maintaining Ubisoft's independence may be in jeopardy. This is not the first time they have faced such challenges; a previous attempt by Vivendi to execute a hostile takeover was ultimately unsuccessful, granting Ubisoft a temporary reprieve.
However, the company has faced a series of setbacks, including allegations of sexual misconduct and disappointing game launches. Titles such as Avatar: Frontiers of Pandora, Skull and Bones, and XDefiant—the latter set to shut down soon—have underperformed commercially. Furthermore, Ubisoft was compelled to delay the release of Assassin's Creed Shadows, incurring significant financial losses in an effort to safeguard its flagship franchise.
