Tencent Holdings and Ubisoft Entertainment’s founding Guillemot family are considering options, including a potential buyout of the French video gaming company, after it lost more than half its market value this year, according to people familiar with the matter.
The Chinese internet giant and Guillemot Brothers have been speaking with advisers to help explore ways to stabilise Ubisoft and bolster its value, according to the people, who asked not to be identified discussing a private matter. One of the possibilities being discussed would involve teaming up to take the company private, the people said.
Ubisoft’s shares rose as much as 33 per cent in Paris on Friday, following the Bloomberg News report, the steepest gain since the company’s 1996 initial public offering.
Shares of Ubisoft have fallen about 40 per cent this year, giving the company a market capitalisation of about €1.8 billion (US$2 billion). Tencent owned 9.2 per cent of Ubisoft’s net voting rights at the end of April, while the Guillemot family held about 20.5 per cent, according to the firm’s latest annual report.
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.
Considerations are at an early stage and there is no certainty they will lead to a transaction. Tencent and the Guillemot family are also considering other alternatives, according to the people.
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