Ubisoft’s stock price surged by 33% during trading on October 4, 2024, following reports of a potential buyout of the company. Bloomberg sources revealed that Chinese tech giant Tencent and the Guillemot Brothers, founders of Ubisoft, are in discussions about a joint acquisition of the remaining shares in the French video game publisher. While no deal has been finalized, the reports have sparked investor interest, leading to a dramatic spike in Ubisoft’s stock.
Troublesome year for the company
Since the beginning of 2024, Ubisoft’s shares had fallen by 38.5%, including the latest rise, reflecting the company’s ongoing struggles. The sharp decline in value created an opportunity for discussions of a potential takeover to emerge. Bloomberg sources highlighted that several scenarios are being considered, though all discussions are still in the early stages.
Guillemot Brothers, the company owned by Ubisoft’s founding family, currently holds 20.5% of Ubisoft’s shares, while Tencent owns a 9.2% stake. One scenario being considered is that both partners would buy out the remaining shares, taking Ubisoft private. Such a move could mark a significant shift for the company, which has been publicly traded for decades.
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The takeover talks come at a time when Ubisoft has faced numerous challenges. The publisher’s stock had fallen to its lowest level in ten years this fall, amid delays in game releases and a string of underperforming titles. The possibility of a buyout has now injected new optimism into Ubisoft’s future, though it remains to be seen how the discussions will unfold.