Ubisoft stock jumps 31% amid Tencent and Guillemot buyout talks
- Ubisoft's shares rose over 30% after reports of a potential buyout by Tencent and the Guillemot family.
- The company faced significant financial challenges, losing more than half its market value this year due to underperforming titles.
- The discussions between stakeholders indicate a strategic move to stabilize Ubisoft's future and regain investor confidence.
In Los Angeles, shares of Ubisoft experienced a significant surge of over 30% on a Friday following reports that Tencent and the Guillemot family are contemplating a buyout of the video game company. This surge comes after a challenging year for Ubisoft, during which the company lost more than half of its market value. The discussions between Tencent, which holds a substantial stake in the Guillemot family, and the Guillemot family themselves aim to stabilize the company amidst its financial struggles. Ubisoft's stock had previously fallen to a decade-low due to underperformance of its latest title, 'Star Wars Outlaws,' and the announcement of a delay for the next installment in the popular 'Assassin's Creed' series. CEO Yves Guillemot acknowledged that the company's second quarter performance did not meet expectations, prompting the need for potential restructuring. The interest from Tencent and the Guillemot family reflects a broader concern among stakeholders regarding Ubisoft's future and the need for strategic changes to regain investor confidence.