January 15, 2025 07:38 GMT
TECHNOLOGY: Media Reports That Ubisoft Is Exploring Tencent JV
TECHNOLOGY
UBIFP Unrated
Reports lean more towards a JV with Tencent as opposed to a buyout which makes sense given the Guillemot brothers seem intent on retaining control and previous reports noted that various strategic options were under consideration. It is difficult to assess the credit implication without knowing the final structure though this would lower the likelihood of a full takeover. Reminder that Ubisoft 27s feature a CoC put at par though this excludes the ‘existing concert’ (i.e. the Guillemot Brothers).
- BBG news reports that Tencent and Guillemot family considering a venture involving Ubisoft assets to enhance its valuation and support Tencent's international gaming expansion.
- Discussions ongoing on what assets to include in a new entity and at what valuation though no decisions have been finalized.
- Broader options, including buyout, under consideration to stabilize Ubisoft after stock performance decline. Strategic advisors appointed to explore alternatives.
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