Ubisoft Buyout Hits a Snag
Ubisoft’s only hope right now is a buyout from Chinese giant Tencent. It looked like that was exactly what was going to happen.
Except it turns out that Tencent isn’t insane, which is a considerable stumbling block to this buyout going through. You see, the Guillemot, who has led the company into its current disastrous state wants to retain control of Ubisoft after the deal goes through.
Tencent hasn’t said why it’s not cool with leaving Ubisoft’s founding family in charge after they sunk the company.
A potential buyout of French game developer Ubisoft, the studio behind Assassin’s Creed, has stalled as the Guillemot family fights to maintain control over the company.
Ubisoft has been in a bad way of late, with financial woes and a series of failed games dogging the once powerful studio. The Guillemot family, who started Ubisoft in 1986, have led their company down the path of ruin. Now they face a unenviable situation. The company needs to buy up stock and privatize if it has any hope of staving off a hostile takeover.
That’s why it’s seeking partners like Chinese company Tencent, which already owns 10% of Ubisoft. However, negotiations have reportedly hit a snag with the Guillemot family fighting to maintain control of their studio following the buyout. One could instantly see the problem with such a move as the Guillemots were the ones who led the company into the dire straights it finds itself now.
According to Reuters, Tencent wants more of a say in boardroom decisions within Ubisoft, including cash flow distribution. The Guillemots have reportedly not accepted these terms and the deal is in danger of falling through. Tencent is apparently happy with its 10% stake in the company, believing it to be acceptable for gaming business cooperation.
Unless this goes through Ubisoft is going to be taken private and then it will start being auctioned off a piece at a time. Nintendo is interested in Rabbids. EA will likely pick up a few of its better-known titles just to sit on them if nothing else. The Guillemot’s will however likely be able to hang on to the Assassin’s Creed plate, if for no other reason than they damaged the brand so badly no one wants it anymore.
