Ubisoft is not going through its best moment. The video game developer’s shares have fallen around 50% in a period of one year, knocking its market capitalization below 1.8 billion euros. This reality has precipitated a somewhat unexpected scenario: Tencent and Guillemot Brothers are considering taking control of the company.
The news comes to us from Bloomberg, which indicates that both the Chinese technology company and the company’s founding family are concerned about its instability and are studying with advisors ways to stabilize the situation. This is a cause for alarm that makes a lot of sense because both actors are involved in Ubisoft because they have shares.
Ubisoft could go public
There are several options on the table at this time. One of them, according to anonymous sources consulted by the aforementioned medium, is the acquisition of Ubisoft by Tencent and the Guillemot family. This would have a direct impact on the way in which the company is exposed to the market because it would cease to be a listed company and become a privately held company.
Although there is still no official information in this regard, a movement of this nature would be in line with the request of some minority shareholders who have been calling for a sale of the company for months. A draft of a possible agreement indicates that Guillemot Brothers would maintain control of Ubisoft, despite Tencent’s participation.
If finalized, the agreement outlines a very clear path for the Chinese giant. On the one hand, it would have less than 10% of the company. On the other hand, he would not have the right to veto and would not be able to sell his shares for five years. The ultimate goal of the agreement is, in addition to stabilizing the company, to keep other interested parties at bay.
Ubisoft shares soared. While on Thursday they closed at 10.64 euros, after rumors they were trading at 14.20 euros, an increase of more than 30%. Ubisoft was founded by five Guillemot brothers in 1986. Among its first games we find ‘Zombi’ and ‘Rayman’. ‘Assassin’s Creed Shadows’, its most recent title, has been delayed by three months.
Images | Sigmund | Ubisoft
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