Talks between Ubisoft’s founding Guillemot family and Chinese tech giant Tencent have gotten a new twist. The parties are reportedly considering establishing a new joint venture.
Assassin’s Creed Shadows
- Tencent and the Guillemot family are currently evaluating which Ubisoft assets to include in a new company, people familiar with the matter told Bloomberg on January 15.
- It is unclear which studios or IPs (Assassin’s Creed, Far Cry, etc.) could be targeted in a potential spinoff.
- No final decision has been made, but such a deal would allow Tencent to gain greater control over some of Ubisoft’s franchises and expand its gaming business outside of China.
- The Guillemot family currently owns 15% of Ubisoft, while Tencent remains the company’s second-largest shareholder with a 10% stake (it also owns 49.9% of Guillemot Brothers Ltd).
- According to Bloomberg, the two parties’ combined stake in the French publisher is 25.4% (they also own 29.6% of the voting rights).
First reports of the talks between the Guillemot family and Tencent emerged last October, with a company buyout named among potential options. So spinning off some assets into a separate entity could be just another way to reorganize Ubisoft.
Earlier this month, Insider Gaming reported that the parties halted the negotiations until the release of Assassin’s Creed Shadows. However, Ubisoft announced a second delay for the game last week, also providing an update on its business restructuring.
In a note to investors, the French company said it has appointed advisors to “review and pursue various transformational strategic and capitalistic options to extract the best value for stakeholders.”