Ubisoft stock surges following Tencent and Guillemot buyout discussions

Ubisoft's stock rose 33% after buyout talks involving Tencent and Guillemot family.

: Tencent and the Guillemot family are considering a buyout of Ubisoft. Ubisoft's stock has increased by 33% following rumors of these talks. The company has faced challenges, including a 40% drop in shares this year and disappointing game launches. The situation remains uncertain as discussions are still in the early stages.

Ubisoft shares surged by 33% after discussions of a buyout involving Tencent Holdings and the Guillemot family surfaced. This rise in stock marks the most significant gain since the company's initial public offering in 1996 and comes after a challenging year in which Ubisoft's market value fell by over 50%.

Tencent, which holds 9.2% net voting rights in Ubisoft, and the Guillemot family, with 20.5%, have been considering taking the company private as one strategy. Meanwhile, Ubisoft's performance continues to struggle with setbacks in game releases, such as Star Wars Outlaws, failing to meet expectations.

Despite the rise in share value, Ubisoft's financial health remains fragile. Projections for upcoming bookings have been cut significantly, and the company is still exploring alternatives for stabilization apart from a potential sale or privatization discussed by Tencent and Guillemot.

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