Ubisoft Reportedly Discussing Buyout Options As Talks Of Going Private Continue

3 weeks ago 51

Image: Zion Grassl / Nintendo Life

Back in October, it was rumoured that Ubisoft was considering going private after a rough year of releases. Two months on and it appears that the negotiations are still ongoing, with Ubisoft and Tencent apparently engaged in talks about buyout terms.

That is according to the latest report from Reuters, which provides new information from "two people familiar with the matter". According to the outlet's sources, Ubisoft shareholders are currently considering a potential buyout of the company, but one that still leaves the founding Guillemot family in control.

However, the company's second-largest shareholder, Tencent, is one of the names mooted to participate in the buyout, with the Chinese tech giant reportedly keen to have a "greater say on future board decisions including cash flow distribution in return for financing the deal".

Naturally, there is some friction between these two desired outcomes, with both the original Guillemot family and Tencent — which owns nearly 10% of Ubisoft — vying for control over the company. Reuters reports that the talks are still ongoing, with no decision having been reached at the time of writing.

Tencent apparently also wants to prevent another hostile takeover from other investors, with the Chinese firm wanting to "remain patient" and for the Guillemot family to "agree to a deal".

Earlier this week, Ubisoft reported another wave of layoffs, with hundreds of staff members reportedly affected. This is but the latest in a slew of cutbacks at the company, which has already seen multiple large layoff schemes in 2024 after reporting a series of poor sales figures.

This includes the announcement that development on the PlayStation, Xbox, and PC free-to-play shooter XDefiant will be ending, with servers being shut down in June 2025.

We will be keeping an eye out for more news on this topic and will keep you updated over the coming months.