Ubisoft is considering a buyout: report

According to sources, Tencent has not yet decided whether to increase its stake, explains the report. The Chinese gaming giant wants a stronger say in board decisions, such as cash flow distribution, if it provides financial backing. However, the Guillemot family prefers to maintain their current level of control.

Talks remain ongoing, with Tencent also aiming to prevent any potential hostile takeover by other investors. The company may opt to keep its stake unchanged, considering it sufficient for maintaining its business partnership with Ubisoft.

Ubisoft’s shares surged by 16% following news of the talks. However, the company has faced challenges, including delayed game launches and the discontinuation of its XDefiant project. These issues led to studio closures in San Francisco and Osaka and reduced operations in Sydney.

In October, Ubisoft stated it was reviewing strategic options amid pressure from minority shareholders seeking a sale or a private takeover. Despite these uncertainties, the company has reiterated its commitment to making decisions that benefit all stakeholders, adds the Reuters report.