According to a recent Bloomberg article, Ubisoft, the largest developer of video games, might be sold off given its dismal results. This announcement follows negative feedback from investors and players alike, as well as a drop in Ubisoft’s stock price.
Changes to the corporation have long been demanded by shareholders, but specifics are yet unknown. It seems that Tencent, a significant Chinese tech corporation and the Guillemot family, the founders of Ubisoft, are looking for plan to better the business after it’s been sold off.
The report assumes that to obtain Ubisoft and exclude it from stock exchanges, Tencent and the Guillemot family would work side by side, in light of Ubisoft’s present difficulties.
Tencent and the Guillemot family have consulted with specialists to investigate the possibility of obtaining Ubisoft following to the beginning of possible ownership discussions. But there’s no assurance that an agreement will be struck, as these are only first talks.
The announcement follows AJ Investments’ strong recommendation that Ubisoft go private, which was brought on by a sharp decline in share prices after the release of Star Wars Outlaws. The market valuation of Ubisoft is currently $1.5 billion, despite the company’s shares falling 54% so far this year. Lower-than-expected sales of Star Wars Outlaws caused the company’s stock to drop to a ten-year low; the game’s director even expressed dissatisfaction at the game’s reaction.
The family-run business Guillemot Brothers LTD was instrumental in the establishment of Ubisoft. Yves Guillemot, the CEO, comes from the family. Tencent presently owns 9.2% of Ubisoft’s voting rights, while GBL currently controls 20%. Tencent expanded its ownership of GBL in 2022. Tencent’s shareholding in Ubisoft was subsequently boosted by this action.
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