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Ubisoft stock surges following Tencent and Guillemot buyout discussions

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Last week Bloomberg reported that, according to people familiar with the matter, Tencent Holdings and the Guillemot family are exploring options for Ubisoft, including a potential buyout.
Editor’s take: What would happen if Ubisoft were actually acquired, as current rumors suggest? Speculation is that a new owner would redirect it to produce fewer, but more commercially viable games and scrap some of its niche projects in favor of established franchises. There is no way to know for sure, but the market certainly favors the prospect of a buyout.
Last week Bloomberg reported that, according to people familiar with the matter, Tencent Holdings and the Guillemot family are exploring options for Ubisoft, including a potential buyout. The parties likely were not happy with the leak, but it ultimately provided a much-needed boost for the French video game developer, which has lost over half its market value this year. Following the story, Ubisoft’s shares surged by 33 percent in Paris, marking the steepest gain since the company’s initial public offering in 1996.
Ubisoft, known for its Assassin’s Creed franchise, has seen its shares fall by about 40 percent this year, reaching their lowest point in over a decade last month.

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