Investi Stratix
  • Politics
  • Economy
  • Forex
  • Stock
  • Editor’s Pick
  • Politics
  • Economy
  • Forex
  • Stock
  • Editor’s Pick
No Result
View All Result
Investi Stratix
No Result
View All Result

Ubisoft shareholders in talks over possible buyout terms, sources say

by
December 6, 2024
in Stock
0
Ubisoft shareholders in talks over possible buyout terms, sources say

By Amy-Jo Crowley and Julie Zhu

LONDON/HONG KONG (Reuters) -Shareholders of Ubisoft Entertainment SA (LON:0NVL) are considering how to structure a possible buyout of the Assassin’s Creed video game maker without reducing the founding family’s control, two people familiar with the matter told Reuters.

The Guillemot family, which is the largest and founding shareholder, has been in talks with Tencent and other investors in recent weeks about funding a management-led buyout of France’s largest video games maker, the people said, speaking on condition of anonymity.

However, the Guillemot family has indicated it would like to retain the control it has over the company, which also makes Just Dance, Far Cry and Tom Clancy’s video game series, as part of a deal, the people said.

Tencent, currently the second-largest shareholder in Ubisoft (EPA:UBIP) and China’s biggest social network and gaming firm, has yet to decide whether to participate in the buyout and increase its stake in the company, one of the people said.

This is partly because it has asked for a greater say on future board decisions including cash flow distribution in return for financing the deal, which has not been agreed upon with the Guillemot family, the person added.

Discussions between the two parties are ongoing as Tencent also wants to prevent any potential hostile takeover of Ubisoft by other investors, said the person, adding that Tencent’s plan is to remain patient and wait for the founding family to agree to a deal.

Tencent may opt not to increase its stake in Ubisoft, as it considers its current direct holding of almost 10% in Ubisoft sufficient for maintaining its gaming business cooperation with the company, the person added.

Tencent declined to comment. A representative of the Guillemot family did not respond to requests for comment.

“We remain committed to making decisions in the best interests of all of our stakeholders” a spokesman for Ubisoft said. “In this context, as we have already indicated, the Company is also reviewing all its strategic options.”

In October, Ubisoft said it regularly reviewed “all its strategic options”, but declined further comment on a report of buyout interest.

Shares in Ubisoft rose as much as 16% after the Reuters report. Its shares were trading up 12.1% at 13.2 euros by 1445 GMT.

The buyout talks come as some minority shareholders including AJ Investments have been pushing for either a take-private or a sale of Ubisoft to a strategic investor amid the stock price plunge, Reuters previously reported.

The company’s shares fell to their lowest level in the last decade in September after it cut its outlook on weaker-than-expected sales and postponed the launch of “Assassin’s Creed Shadows” title.

This week it announced it would discontinue development of its gaming title XDefiant and as a consequence close its production studios in San Francisco and Osaka, and ramp down production in Sydney.

Ubisoft is run by the Guillemot family, which owns 15% of the firm, followed by Tencent which owns just under 10%, according to LSEG data.

The family held about 20.5% of Ubisoft’s net voting rights while Tencent owned 9.2% as of the end of April, as per the firm’s latest annual report.

This post appeared first on investing.com
Previous Post

EU, Mercosur leaders react to free trade deal

Next Post

Instant view: US Nov payrolls show job growth accelerated after October hiccup

Next Post
Instant view: US Nov payrolls show job growth accelerated after October hiccup

Instant view: US Nov payrolls show job growth accelerated after October hiccup

Subscribe to InvestiStratix.com

    Popular News

    Why Donald Trump’s 50% tariff threat against Brazil isn’t just about trade

    Why Donald Trump’s 50% tariff threat against Brazil isn’t just about trade

    July 11, 2025
    Brazilian markets reel after Trump slaps surprise 50% tariff

    Brazilian markets reel after Trump slaps surprise 50% tariff

    July 11, 2025
    How billionaire Caltagirone could influence Italy’s banking M&A wave

    How billionaire Caltagirone could influence Italy’s banking M&A wave

    July 11, 2025
    Donald Trump delivers tariff letters to 7 more nations; meets African delegation

    Donald Trump delivers tariff letters to 7 more nations; meets African delegation

    July 10, 2025
    Monster Beverage stock slide 3% after this brokerage downgraded the stock

    Monster Beverage stock slide 3% after this brokerage downgraded the stock

    July 10, 2025

    Trending News

    Why Donald Trump’s 50% tariff threat against Brazil isn’t just about trade

    Why Donald Trump’s 50% tariff threat against Brazil isn’t just about trade

    July 11, 2025
    Brazilian markets reel after Trump slaps surprise 50% tariff

    Brazilian markets reel after Trump slaps surprise 50% tariff

    July 11, 2025

    Popular News

    • How billionaire Caltagirone could influence Italy’s banking M&A wave
      July 11, 2025
    • How billionaire Caltagirone could influence Italy’s banking M&A wave
      July 10, 2025

    About Us

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 investistratix.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Economy
    • Forex
    • Stock
    • Editor’s Pick

    Copyright © 2025 investistratix.com | All Rights Reserved