Ubisoft Issues Ambiguous Response to Tencent Buyout Speculations
French video game publisher Ubisoft has issued a cautious statement regarding recent rumors that Chinese tech giant Tencent might acquire the company. Responding to a Bloomberg report suggesting that Tencent and the Guillemot family are exploring strategic options to stabilize Ubisoft, the company stated it regularly reviews all possibilities in the interest of stakeholders but provided no specific details. The speculation arises amid financial challenges for Ubisoft, including a 19% drop in share price last month following the delay of Assassin’s Creed Shadows and disappointing sales figures for Star Wars Outlaws. One potential scenario under consideration is taking the company private. Currently, Tencent holds a 10% stake in Ubisoft and controls 49.9% of Guillemot Brothers Ltd., the holding company of Ubisoft’s founding family. While Ubisoft promised to inform the market if and when appropriate, the ambiguous nature of the response has left investors and industry observers awaiting further clarity on the future ownership structure of the prominent game developer.
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Ubisoft Issues Ambiguous Response to Tencent Buyout Speculations
French video game publisher Ubisoft has issued a cautious statement regarding recent rumors that Chinese tech giant Tencent might acquire the company. Responding to a Bloomberg report suggesting that Tencent and the Guillemot family are exploring strategic options to stabilize Ubisoft, the company stated it regularly reviews all possibilities in the interest of stakeholders but provided no specific details. The speculation arises amid financial challenges for Ubisoft, including a 19% drop in share price last month following the delay of Assassin’s Creed Shadows and disappointing sales figures for Star Wars Outlaws. One potential scenario under consideration is taking the company private. Currently, Tencent holds a 10% stake in Ubisoft and controls 49.9% of Guillemot Brothers Ltd., the holding company of Ubisoft’s founding family. While Ubisoft promised to inform the market if and when appropriate, the ambiguous nature of the response has left investors and industry observers awaiting further clarity on the future ownership structure of the prominent game developer.
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