Ubisoft is seeking to increase its value by forming a strategic partnership with Chinese giant Tencent. However, it remains unclear whether this agreement will lead to Tencent fully acquiring Ubisoft. According to recent reports, the Guillemot family, which holds a significant portion of Ubisoft’s shares, is considering moving some of the company’s assets into a joint venture with Tencent.

Is Tencent Taking Control of Ubisoft?

Through this new initiative, Tencent would gain more influence over some of Ubisoft’s intellectual property rights and assist in expanding the company’s gaming business outside of China. No final decision has been made yet. In an earlier statement, Ubisoft mentioned that they are exploring how to create the best value for their investors.

Tencent’s interest in Ubisoft isn’t new. In 2022, the company acquired a 10% stake in Ubisoft and a 49.9% stake in Guillemot Brothers Limited. At the time, this move was seen as a shield to protect Ubisoft from hostile takeovers. However, the agreement prevents Tencent from selling its shares until 2027, making it crucial for Tencent to help improve Ubisoft’s future.

Ubisoft has faced significant failures in recent years. The disappointing sales of Skull and Bones, Star Wars Outlaws, and XDefiant have negatively impacted the company’s financial standing. In September 2024, Ubisoft’s share value hit a historic low of €9.19. However, following rumors of a Tencent acquisition, Ubisoft shares rose by 4.3%.

One of Ubisoft’s most prominent franchises, Assassin’s Creed Shadows, is also struggling with major issues. The game’s release has been delayed for the third time, now scheduled for March 20, 2025. While Ubisoft claims the delay is to further polish the game, many analysts suggest that the company is wary of backlash from players after the flawed launch of Star Wars Outlaws.

Do you think Tencent will gain full control of Ubisoft? What impact would this merger have on the gaming world? Share your thoughts in the comments!”