A new report may contain fresh clues about the apparent partnership between Ubisoft and Tencent, Ubisoft’s fortunes continue to slide and the company looks for a way forward.
Bloomberg reported that Ubisoft and Tencent are considering, among other options, “creating a new venture” that could include “certain Ubisoft assets.” The overall aim is to improve the company’s value, sources said. The two companies are now “evaluating which assets to include in a new entity and their valuation,” the report said, citing anonymous sources.
Should a deal come together, Tencent could “gain more control over” some of Ubisoft’s franchises, the report said, adding that Tencent would also benefit from improving its own business results outside of China.
Sources told Bloomberg that no final decisions have been made and that conversations remain ongoing. None of this should be surprising, either, as Ubisoft said on January 9 that it had appointed advisors to examine opportunities for Ubisoft to maximize the value of its company through a variety of possible business maneuvers. In a conference call, though, Ubisoft declined to comment on the reported Tencent discussions, which date back many months.
A spokesperson for Tencent declined to comment when approached by Bloomberg, while a representative for Ubisoft pointed to the January 9 announcement.
During a conference call, Ubisoft CEO Yves Guillemot said he sees “several potential paths” for the company and its franchises going forward to maximize shareholder value. It was previously reported that Ubisoft was considering numerous different possibilities for its future, including selling to Tencent.
On the call, Ubisoft declined to comment on the report of the company potentially selling to Tencent, but management said it is “exploring different options,” adding, “We can’t say more.”
Ubisoft’s share price rose on January 15, following the publication of Bloomberg’s report. This came after periods of consistent declines. Ubisoft recently delayed its next big game, Assassin’s Creed Shadows, to March.
In related news, the Biden administration recently added Tencent to a list of companies affiliated with the Chinese military. Tencent said the US government “clearly” made a mistake, going on to deny that it is a military company or supplier for the Chinese government.