Co-founders of Ubisoft continue negotiations to maintain control!

We recently saw Ubisoft announce the closure of one of its games as a service released earlier this year, a fact that comes after several missteps by the company, which is not in a good situation, especially regarding its big bets that didn't please players very well. Even Ubisoft's successes were "poorly viewed" by the company itself, with the Prince of Persia: The Lost Crown studio being dissolved.

Adding to the fact that the company's stocks are falling more and more, Ubisoft is racing against time to find a way to continue funding its projects, and a key point would be a deal with Tencent, however, the company's co-founders do not want to lose control of the company, or at least part of it.

The Reuters reports that the Guillemot family — which holds the largest stake in Ubisoft — is talking to Tencent and other financial partners to try to find a way to finance a "management-led acquisition."

CEO Yves Guillemot and his family are interested in maintaining control of Ubisoft amid any such deal, and this has apparently been a point of contention in financing discussions. The report said that Tencent is asking for a "greater voice in future board decisions" in exchange for injecting more money into Ubisoft. The report also said that Tencent may not invest any more money in Ubisoft.

The report continued by stating that Tencent wants to make a deal to help prevent any other company from making a hostile acquisition offer for Ubisoft. In 2017, Vivendi Universal attempted a hostile acquisition of Ubisoft. The French gaming giant successfully fought it off after striking deals with Tencent and a Canadian pension plan.

Tencent currently holds nearly 10% of the shares of Ubisoft. The Guillemot family holds 15%.

"We remain committed to making decisions in the best interest of all our stakeholders," Ubisoft said in a statement to Reuters. "In this context, as we have already indicated, the company is also reviewing all of its strategic options."

Earlier this week, Guillemot sent a memo to the team that hinted at ongoing business discussions about the company's future. In announcing the closure of XDefiant and the shutting down of several studios resulting in hundreds of layoffs, Guillemot said: "I am working tirelessly with my team to identify the best solutions so we can maintain control of our destiny."

This latest development follows a story in October claiming that Ubisoft and Tencent were discussing multiple options, including a full acquisition. At the time, Ubisoft acknowledged that discussions were ongoing as the company sought to find an agreement that would appease shareholders. That report said it was early for such talks, and this new report does not mention anything close to a closed deal.

In September, Ubisoft's stock fell to the lowest level since 2015, dropping 12.6% after the release of Star Wars Outlaws with sales below expectations. Ubisoft also delayed Assassin's Creed Shadows from November 15 to February 14, 2025, leveraging the feedback learned from the release of Star Wars Outlaws.