Ubisoft responds to possible Tencent buyout that hinges on one condition

A new report from Reuters has claimed Ubisoft Entertainment SA is currently engaging in close discussions with Tencent on organizing a possible buyout of Ubisoft, the development studio behind popular video game franchise Assassin's Creed.

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Reuters cites two people familiar with the matter who spoke to the publication on the condition of anonymity, and according to these sources, Ubisoft is attempting to initiate a buyout but keep the majority of control in the hands of the Guillemot family, currently the largest and founding shareholder. According to Reuters, the Guillemot family has been in talks with Tencent about the buyout, which currently owns a 10% stake in Ubisoft.

Reuters reports Tencent has yet to decide on if it will greenlight the buyout, as Tencent reportedly wants a greater say in future decisions made by Ubisoft's board, along with a cash flow distribution in return for financing the deal. The publication notes that discussions between Ubisoft and Tencent are ongoing as both parties want to prevent Ubisoft from suffering from a hostile takeover by outside investors. One of the sources told Reuters that Tencent's plan is to wait for the Guillemot family to agree to the terms of its current deal.

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

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