By Sagar V. Mankar 
Ubisoft, the iconic French video game maker behind hits like Assassin’s Creed, Far Cry, and Just Dance, is reportedly in advanced discussions about a potential buyout involving Chinese tech giant Tencent. According to Reuters, these talks could lead to a significant shift in ownership while allowing Ubisoft’s founding family, the Guillemots, to retain control.
The Guillemot family, which founded Ubisoft and holds the largest stake (15%), has been exploring options to secure funding for a management-led buyout. Tencent, currently Ubisoft’s second-largest shareholder with nearly a 10% stake, has expressed interest in increasing its investment. However, the discussions are complex, as Tencent seeks more influence over decision-making, including future board choices and financial distributions. Currently, the family holds nearly 20.5% of Ubisoft’s net voting rights while Tencent owns 9.2%, as per the firm’s latest financial report.
Ubisoft’s spokesperson told Reuters that the company is “committed to making decisions in the best interests of all of our stakeholders,” while “also reviewing all its strategic options.”
Ubisoft has faced significant challenges in recent years, including allegations of workplace misconduct, underwhelming game releases (Star Wars Outlaws, XDefiant, and Prince of Persia: The Lost Crown), and declining sales. These issues have led to layoffs, studio closures, and plummeting stock prices, with shares hitting a decade-low in September.
This week, the company announced the discontinuation of its XDefiant project and the closure of production studios in San Francisco, Osaka, and Sydney.
Despite these setbacks, the news of Tencent’s interest has reignited investor confidence. Ubisoft’s stock surged by 14% following the report. Minority shareholders, including AJ Investments, have reportedly been advocating for a strategic sale or a move to privatize the company, further adding momentum to these discussions.