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Tencent wants to buy Ubisoft?

CG world 2024/10/06 21:20

On October 5, Bloomberg announced that Chinese technology company Tencent and the Guillemot family, the founding family of Ubisoft, a well-known France game developer, are in talks about a potential acquisition.

CG World, Tencent wants to buy Ubisoft?

According to insiders, the two parties have been working with a team of advisors to explore ways to stabilize Ubisoft's operations and increase its value. One of the most discussed options is for the two parties to join forces to promote the privatization of Ubisoft. It is worth noting that Ubisoft's market capitalization has fallen sharply this year, by more than 50%, and its current market capitalization on the Paris Stock Exchange is estimated at around 1.4 billion euros (about 1.5 billion US dollars), a financial woe that makes Ubisoft a potential target for acquisitions. As soon as this news came out, it immediately caused a huge reaction in the industry and caused Ubisoft's stock price to soar by 30% on the day. However, according to people familiar with the matter, the acquisition of Ubisoft is still in the preliminary stage, and there is still uncertainty about whether the deal can finally be realized.

CG World, Tencent wants to buy Ubisoft?

Tencent's relationship with the Guillemot family dates back many years, when Tencent forged a close relationship with Ubisoft through equity investment and shareholding. According to Ubisoft's latest financial report, Tencent holds a significant proportion of the voting rights, while the Guillemot family holds more than 20% of the voting rights, and this shareholding structure provides a solid foundation for the two sides to deepen cooperation.

Market analysts pointed out that Tencent's strong interest in Ubisoft's acquisition is mainly due to the recognition of Ubisoft's important position and extensive influence in the global gaming field. As China's gaming market becomes increasingly saturated, Tencent is looking for opportunities to expand overseas, and Ubisoft's deep experience in North America and Europe is undoubtedly a valuable asset in its eyes.

CG World, Tencent wants to buy Ubisoft?

For the Guillemot family, joining forces with Tencent could be a key move to revitalize Ubisoft. In the context of increasingly fierce market competition, Ubisoft is in dire need of capital injection and strategic guidance, and Tencent has undoubtedly become the ideal partner choice.

However, the consultations between the two sides are still in the preliminary stage, and the specific direction of future cooperation has not yet been clarified. In addition to the acquisition plan, Tencent and the Guillemot family are also considering other alternatives, including the sale of Ubisoft to strategic investors. Ubisoft's share price has fallen sharply this year, and some minority shareholders have been pushing Ubisoft to either go private or sell to strategic investors amid a plunging share price.

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