On October 5th, according to Bloomberg, the Guillemot family, the founding family of Tencent and French gaming company Ubisoft, are considering acquiring Ubisoft. This news quickly attracted widespread attention in the industry and drove Ubisoft's stock price to surge by 10% and halt trading. However, according to sources, the consideration of Ubisoft is still in its early stages, and it is uncertain whether the deal can be reached.

According to insiders, Tencent and the Guillemot family have been in discussions with consultants to explore ways 

to stabilize Ubisoft and enhance its value. One possibility being discussed is the possibility of partnering to privatize 

the company. Ubisoft's market value has fallen by more than half this year, and its current market value on the Paris 

Stock Exchange is about 1.4 billion euros (approximately 1.5 billion US dollars). This poor financial performance makes 

Ubisoft a potential acquisition target.

The relationship between Tencent and the Guillemot family can be traced back to several years ago. 

According to Ubisoft is latest annual report, as of the end of April 2022, Tencent holds 9.2% of Ubisoft's 

net voting rights, while the Guillemot family holds approximately 20.5%. In addition, Tencent indirectly 

increased its influence on Ubisoft by acquiring 49.9% equity of Guillemot Brothers Limited in 2022. This 

transaction increases Tencent and the Guillemot family's shareholding/voting rights in Ubisoft to 29.9%.

According to foreign media, Tencent is intention to acquire Ubisoft is obvious, mainly to expand its market 

share globally. In recent years, the Chinese gaming market has become saturated, while foreign markets, 

especially those in North America and Europe, still have enormous growth potential. By acquiring Ubisoft, 

Tencent can not only directly access these markets, but also leverage Ubisoft's technology and resources to 

further enhance its product line.

For the Guillemot family, considering cooperation with Tencent may be based on multiple strategic considerations. 

Ubisoft's financial performance in recent years has not been as expected, and it is particularly important to find a 

strong partner in the face of intensified industry competition. As a capital strong investor, Tencent can not only 

provide financial support for Ubisoft, but also assist in market operations and strategic planning.

It is worth noting that foreign media have also mentioned that Tencent and the Guillemot family are considering 

other alternative options, including selling Ubisoft to strategic investors. Ubisoft's stock price has fallen sharply this year, 

and some minority shareholders have been pushing for Ubisoft to either go private or sell to strategic investors 

amid a sharp drop in stock prices.