By Investing.com — According to a report from Bloomberg, Tencent Holdings (OTC:TCEHY) Ltd. and Ubisoft Entertainment SA’s founding Guillemot family are exploring several options, including a potential buyout of the French video game developer, after its market value dropped by more than half this year.
Both Tencent and the Guillemot Brothers Ltd. have reportedly been in talks with advisers to evaluate ways to stabilize Ubisoft and improve its value, Bloomberg said, citing sources familiar with the matter.
The sources reportedly told the publication that one of the strategies being considered is a joint effort to take the company private.
However, the talks are still in the early stages, and there is no guarantee they will result in a transaction.
Ubisoft shares have surged more than 29% following the news.
According to the latest figures, Tencent controls 9.2% of Ubisoft’s voting rights, while the Guillemot family holds around 20.5%.
This year, Ubisoft’s stock has plunged by 54%, leaving its market capitalization at approximately €1.4 billion ($1.5 billion). The stock’s significant decline has prompted some minority shareholders, such as AJ Investments, to push for a potential sale or a take-private deal.
Despite these efforts, both Tencent and the Guillemot family are also considering other options, according to Bloomberg’s sources.
Last month, Ubisoft shares hit their lowest level in over a decade following the company’s decision to cut its outlook due to disappointing sales and delays with the highly anticipated “Assassin’s Creed Shadows” game.