Tencent and Guillemot Brothers Lock Horns Over Ubisoft Control
A power struggle has emerged between Ubisoft’s major shareholders, as negotiations between Tencent and Guillemot Brothers Ltd. reach an impasse over company control. The dispute centres on Tencent’s desire for greater board influence, while the Guillemot family, led by Ubisoft co-founder and CEO Yves Guillemot, seeks to maintain their current level of control. While Ubisoft’s financial standing has become an area of concern recently, Tencet recently reported a revenue increase of 8% year-on-year to ¥167.2 billion
According to Reuters sources, Tencent is postponing participation in the buyout until their demands for increased influence are met. The negotiations originally aimed to prevent hostile takeover attempts by other investors, but the resulting stalemate has created uncertainty about Ubisoft’s future direction.
The company faces mounting challenges, including recent financial setbacks from the underperforming Star Wars Outlaws and a significant share price decline. A minority shareholder has suggested privatization as a potential solution. Ubisoft has also delayed Assassin’s Creed Shadows to 2025, revised down its financial targets, and initiated an internal review. Recent restructuring has led to the closure of two studios associated with the recent shut down news for shooter XDefiant and the dissolution of the Prince of Persia: The Lost Crown team.
This leadership uncertainty could significantly impact the development of the new Ghost Recon title. Recently Ubisoft reached out to gamers with a Ghost Recon survey to gauge the appetite and interest in the next instalment of the series. However the Ghost Recon franchise, a stronghold for consistent returns for Ubisoft, may now face development delays as decision-making processes slow amid the corporate turmoil. If Tencent gains more influence, we might see the next Ghost Recon embrace more aggressive monetization strategies and possibly a stronger focus on mobile or free-to-play elements, similar to other Tencent-influenced properties. However, Ubisoft do not have a great track record in these areas and if the Guillemot family maintains control, they may insist on preserving Ghost Recon’s traditional premium gaming model, though ongoing financial pressures could still affect the game’s scope and development timeline.
The outcome will be crucial for both Ubisoft’s corporate future and its ability to deliver major franchises in an increasingly competitive gaming market.
What do you think – in difficult financial times is this a good opportunity for Ubisoft, or is Tencent not a good fit for the Ghost Recon franchise? Have your say in our Ghost Recon : Next forums.
