Sinking stock, sliding sales, Assassin’s Creed Shadows‘ postponed release — these are just some troubles pushing Ubisoft’s Guillemot family toward tech titan Tencent. The Chinese conglomerate, the world’s largest video game vendor, owns IPs like League of Legends and holds stakes in Roblox Corporation (Roblox) and Epic Games (Fortnite). According to Ubisoft Entertainment SA’s annual report, Tencent and the Guillemot family own 25% of Ubisoft’s share capital — Tencent’s 10% alongside the Guillemot family’s 15% — and just under 30% of voting rights. However, a new Bloomberg release detailing the two brands’ potential “new venture” suggests the company seeks to absorb and control Ubisoft’s most notable properties.
Ubisoft’s Jan. 9 press release reveals the brand “has appointed leading advisors to review and pursue various transformational strategic and capitalistic options to extract the best value for stakeholders. This process will be overseen by the independent members of the Board of Directors. Ubisoft will inform the market in accordance with applicable regulations if and once a transaction materializes.”
These talks follow two controversial moves amplifying tension between the U.S. and China: the U.S. Defense Department’s addition of Tencent Holdings Ltd. to its list of companies associated with the Chinese military and the looming nationwide ban of TikTok and its parent company ByteDance.
Widespread reports and speculation are already impacting Ubisoft; the brand’s stock rose 4.98% following yesterday’s dip and a nearly 50% yearlong slump. Ultimately, the acquisition could benefit both brands, raising Ubisoft’s value and broadening Tencent’s reach outside China. However, some worry the controversial ByteDance ban and Tencent’s spot on the U.S. Defense Department’s list may impact the absorption in ways that have yet to materialize. Tencent Holdings Ltd. has already threatened to sue the U.S. government if they refuse to reverse the company’s new position on its blacklist.
A lifelong gamer raised on classic titles like Crash Bandicoot, Spyro, and Croc, Stephanie brings her expertise of gaming and pop culture to deliver unique, refreshing views on the world of video games, complete with references to absurd and obscure media.
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