Tencent Buying Out Ubisoft Could Hit a Brick Wall as Guillemot Family Looks to Retain Control Post Acquisition

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Tencent Buying Out Ubisoft Could Hit a Brick Wall as Guillemot Family Looks to Retain Control Post Acquisition

Tencent is Ubisoft’s second-largest investor with a 10% stake in the company. However, it has been meaning to take control of the entire company for a while now, and Ubisoft surprisingly seemed to be open to the proposition.

Tencent’s acquisition of Ubisoft has shifted to the back seat. Image Credit: Tencent

However, things might end up hitting a brick wall since the Guillemot family that owns Ubisoft is thinking of retaining control even after the accusation by Tencent, and this might hinder the deal, of course.

The Guillemot Family does not Want To Let Go of Ubisoft

The Guillemot family will not let go easily. Image Credit: Ubisoft

It seems like the stakeholders are currently devising a strategy that would help the family retain control over the studio even after the acquisition. Tencent has been in talks with them about a possible buyout, but not much has yet been shared with the public.

Tencent is the biggest social network and gaming firm based out of China, and it is also the second largest shareholder in Ubisoft just after the Guillemot family. Even Tencent does not seem too sure about buying out the studio just yet, especially after the recent complications with the family wanting to retain control.

Exact details about the deal between the two parties have not been shared publicly as of now, but it is being speculated that the major reason for the deal seems to have been pushed due to the demands of the Guillemot family of wanting to have the final say in the workings of the studio, including board decisions and cash flow distribution.

Both parties seem to be patiently waiting to find a middle ground that works best for both of them since Tencent also does not want the studio’s hostile takeover by someone else. This arrangement has turned into a test of patience as of now as both parties are working towards making the deal better for all people involved.

Ubisoft Is Not In The Best Shape At The Moment

Assassin’s Creed Shadows is also suffering from bad management. Image Credit: Ubisoft

Ubisoft has recently announced the discontinuation of its live-service FPS title XDefiant, which has been hanging by a loose thread for a while now. The studio had to cut loose a lot of things, which ultimately pushed the release date of its upcoming title, Assassin’s Creed Shadows after it was subject to some massive controversy online.

Following XDefiant‘s discontinuation, Ubisoft has also announced that it will be shutting down its production studios in San Francisco and Osaka and will significantly reduce activity in its Sydney office as well.

Ubisoft is in desperate need to be revamped. It needs a fresh chain of command that might take it out of the quicksand. The clock is ticking while Tencent and Guillemot patiently wait for their game of chess to finish. Who will acquire what is a question that only time will tell. What do you think about it? Let us know in the comments below.

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