Tencent and Ubisoft in talks over potential management-led buyout

Ubisoft shareholders are exploring a potential buyout of the company while preserving the founding family’s control. 

As reported by Reuters, the Guillemot family, Ubisoft’s largest shareholder, is in talks with second-largest shareholder Tencent and other investors about a management-led buyout while aiming to retain control over the company.

Tencent is yet to decide on joining a buyout as it seeks more influence over board decisions, including cash flow distribution, which the Guillemot family has not agreed to. Talks are ongoing, with Tencent aiming to block hostile takeovers and await the family’s agreement.

“We remain committed to making decisions in the best interests of all of our stakeholders” a spokesman for Ubisoft said. “In this context, as we have already indicated, the Company is also reviewing all its strategic options.”

From boardroom battles to worker protests

Minority shareholders, including AJ Investments, are pushing for a Ubisoft buyout or sale amid plunging stock prices. This is driven by weak sales, delayed game launches, and recent project cancellations like XDefiant. 

Elsewhere, unions representing Ubisoft’s Barcelona studios and the CGT have filed a lawsuit against the company over its remote work policy requiring employees to return to the office three days a week. 

Meanwhile, over 700 Ubisoft France employees went on a three-day strike, protesting the same mandate, following warnings from the French games industry union STJV.