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[Lunatic_Gamer]

Key Quotes:

"Tencent Holdings Ltd. and Ubisoft Entertainment SA's founding Guillemot family are considering creating a new venture that would include certain Ubisoft assets as they seek to boost the French video-game company's value, people familiar with the situation said.

The Chinese technology firm and the Guillemot family are evaluating which assets to include in a new entity and their valuation, the people said, asking not to be identified because the deliberations are private. A potential deal would allow Tencent to own a stake in the venture and gain more control over some of Ubisoft's intellectual properties, while boosting its video game business outside of China, the people said.

Deliberations are ongoing and no final decisions have been made, the people said. A representative for Tencent declined to comment. A spokesperson for Ubisoft referred to the company's Jan. 9 announcement, when it said it had appointed advisors to review and pursue various options to boost value, declining to comment until that process has been completed.

Bloomberg News reported in October that Tencent and the Guillemot family were speaking with advisers on ways to stabilize Ubisoft and bolster its value after its share price plunged. A buyout was one of the options under consideration, people familiar with the matter have said."

Tencent, Guillemot Family Are Said to Mull Ubisoft Asset Venture

Tencent Holdings Ltd. and Ubisoft Entertainment SA’s founding Guillemot family are considering creating a new venture that would include certain Ubisoft assets as they seek to boost the French video-game company’s value, people familiar with the situation said.

www.bloomberg.com

 

[Laptop1991]

They will have to change the formula they have been using recently to make games or they won't sell and their reputation isn't good now, infact it's really bad and gamer's have long memories.

 

[SJRB]

I’m so sick and tired of hearing about the misadventures of these Guillemot clowns.

It’s always about money, profit maximisation, shareholder revenue, bonuses, asset value, business expansion.

Fuck off.

 

[GrayChild]

Can't wait for this to end, just to stop hearing about Ubisoft and their terrible business decisions.

Seriously, these guys make EA and Activision look perfect the way they are.

 

[Kurotri]

So what does this mean? A new company where certain IPs will be offloaded to that Tencent has more control over? And if that company does well they..somehow boost Ubi's stock or something? Just by association? I'm confused.

 

[SplunkyMunkey]

If they reduce the asset could sony or nintendo swoop in and buy multiple studios and ips? As I hear selling of assets and studios? I would love if tencent didn't have it due to the point that tencent is gonna own all studios and publishers as this rate

 

[Thief1987]

So what does this mean? A new company where certain IPs will be offloaded to that Tencent has more control over? And if that company does well they..somehow boost Ubi's stock or something? Just by association? I'm confused.

They want to offload part of Ubisoft's property to some subsidiary joint company which Guillemots and Tencent would own. Basically they want to become private.

 

[mdkirby]

My understanding is Ubisoft is unionised. They are also based in eu countries with strong employee protection laws.

If as both the ceo says is true (ie that 50% of their 20,000 staff are juniors who haven’t made a game before), and recent reports of the staggering amount of deadweight, then they can’t just “sack them” easily.

This could be a get out hatch, make a new company with tencent, transfer the core IP, then shut down Ubisoft, so the jobs no longer exist. Offer jobs at the new company to the high performing talent.

 

[Hudo]

I dunno, man. Making a deal with Tencent is like making a deal with the Russian mafia, imho. They will fuck you over at some point.

 

[Gonzito]

I dont understand why Sony or Microsoft don't offer that buy them or something. Maybe they could actually start making good games again

 

[Mr Moose]

I dont understand why Sony or Microsoft don't offer that buy them or something. Maybe they could actually start making good games again

They can't (MS can't legally).
And wouldn't want to either, bloated ass company.

 

[Bitmap Frogs]

the guillemots are the problem

 

[lh032]

I dont understand why Sony or Microsoft don't offer that buy them or something. Maybe they could actually start making good games again

good games is not enough. Companies wants profit.

Ubisoft has more than 20k employees i believe? that is a huge operating cost

 

[Thief1987]

I dont understand why Sony or Microsoft don't offer that buy them or something. Maybe they could actually start making good games again

I doubt that there are many willing to buy a deadweight of 20k employees. And also it seems like Guillemots desperately don't want to sell, more to it they most likely want to become Ubisoft's private owners and this ruse with Tencent is part of this movement.

 

[Complistic]

Tencent great, that'll make things better.

 

[ValiantInstance]

The Guillemot family are seemingly impervious to the effects of free market economics.

How do they still have this much sway. They should be bought out and therefore ousted from anything to do with the company ever again.

 

[MayauMiao]

I dunno, man. Making a deal with Tencent is like making a deal with the Russian mafia, imho. They will fuck you over at some point.

How so? Ubisoft already fucked gamers, how would making a deal with Tencent be any worse?

 

[Hudo]

How so? Ubisoft already fucked gamers, how would making a deal with Tencent be any worse?

I know it's popular to hate on Ubisoft and I don't deny that they're, like every other big company, shitty to their customers. But I believe that Tencent getting ownership of Ubisoft's IPs is even worse.

Edit: Ubisoft still have some occasional releases that are pretty good. And they've got some stuff in the pipeline that has the potential to be good, like Anno 117, the new Rayman game or Heroes of Might & Magic: The Olden Era. I fully believe that Tencent either wouldn't make these "smaller" games or try to monetize them even more aggressively.

 

[Hypereides]

I dont understand why Sony or Microsoft don't offer that buy them or something. Maybe they could actually start making good games again

Merger and acquisitions is more than just forking up a sum of cash and "owning" a company. They'd inherit their entire organizational infrastructure and their miscellaneous challenges.

 

[hououinkyouma00]

Tencent can have em.

Probably improve tenfold anyways. What’s the last good thing to come out of France anyways?

 

[hinch7]

Ubisoft as a brand are tainted now so this is probably the best way they can get out. Tencent were rumored to be circling around Ubi even before all of this went down.

 

[Three]

AC Online. A new mobile game.

 

[HogIsland]

- Kill Ubisoft Connect, embrace Steam
- Make Rainbow Six Siege 2

 

[Cyberpunkd]

This could be a get out hatch, make a new company with tencent, transfer the core IP, then shut down Ubisoft, so the jobs no longer exist.

Even if they are in their right at least in France the moment they announce it the State will order a fiscal control, and everything else for that matter.

 

[blastprocessor]

GAAS is the answer buy the Concord IP.

 

[mdkirby]

Even if they are in their right at least in France the moment they announce it the State will order a fiscal control, and everything else for that matter.

Yah it’s very different to the U.S. where it would be comparatively trivial to purge huge amounts of staff, then immediately start hiring back up.

 

[R6Rider]

I'd rather them make a huge downsize, and sell off most of their IPs.

Basically anything Tom Clancy is better in someone else's hands at this point.

 

[Mibu no ookami]

Imagine these shareholders allowing this family to sink the company and then raid the assets for pennies on the dollar.

The shareholders should call for an emergency meeting to fire the entire board and to fire the CEO.

Bringing in a new board and a new CEO, if it is determined that the best course of action is to sell off assets, then those assets should be sold to the highest bidder rather than to the Guillemot family who sunk the value of the assets in the first place.

I could see EA being interested in some of those assets and perhaps Microsoft too.

The problem is how toxic those assets are now. Ghost of Yotei could completely kill off Assassin's Creed this year. Splinter Cell is long gone.

Rainbow Six is probably the only asset with long term and current value.

Ubi Soft is basically the most generic company in gaming today.

 

[Felessan]

I fully believe that Tencent either wouldn't make these "smaller" games or try to monetize them even more aggressively.

You, as many others, have a great misconception about Tencent and their modus operandi
Both last year stars Wukong and Stellar Blade backed by Tencent without "wouldn't make or monetize aggressively"

 

[MikeM]

This guy need to let go. Stop trying to control something that is clearly failing. Sell it and let your family ball out on the money.

 

[poodaddy]

I'd rather them make a huge downsize, and sell off most of their IPs.

Basically anything Tom Clancy is better in someone else's hands at this point.

This. I don't want these cucks fuckin up a potential Splinter Cell return to form one day. Sell the IP to someone who cares.

 

[yurinka]

hearing about the misadventures of these Guillemot

It’s always about money, profit maximisation, shareholder revenue, bonuses, asset value, business expansion.

This is what CEO & board of directors do in all companies, it's their job.

Tencent were rumored to be circling around Ubi even before all of this went down.

Tencent gave money to the Guillemots to help them (+ their stockholders partners/allies, which include a big chunk of Ubi employees) have full control of the company, and signed that in a certain amount of years (don't remember if 5 or 8 years, and don't remember how long ago it was) they wouldn't buy more Ubisoft stock and wouldn't sell the one they have.

That would be compatible with making an Ubisoft+Tencent spinoff -which could keep private, safe from hostile takeovers and stock market value engineering from hostile actors- to move part of Ubisoft there, which would give money to Ubisoft for the transaction and would reduce its costs since now part of then would be on that spinoff. While at the same time, they would continue controlling it.

 

[NickFire]

I can't help but wonder if this would allow a new company to control the best assets while leaving Ubisoft in hospice after the owners cash out.

 

[Kurotri]

Tencent gave money to the Guillemots to help them (+ their stockholders partners/allies, which include a big chunk of Ubi employees) have full control of the company, and signed that in a certain amount of years (don't remember if 5 or 8 years, and don't remember how long ago it was) they wouldn't buy more Ubisoft stock and wouldn't sell the one they have.

That would be compatible with making an Ubisoft+Tencent spinoff -which could keep private, safe from hostile takeovers and stock market value engineering from hostile actors- to move part of Ubisoft there, which would give money to Ubisoft for the transaction and would reduce its costs since now part of then would be on that spinoff. While at the same time, they would continue controlling it.

Man, the corporate world is so fucking insane. To someone who isn't as in the know when it comes to these things it reads like some insane story twist. How is that even possible

 

[yurinka]

Man, the corporate world is so fucking insane. To someone who isn't as in the know when it comes to these things it reads like some insane story twist. How is that even possible

Yes, it's pretty insane.

And well, in big corporations even if they talk in a politically correct way, PR friendly way, specially publicly to don't affect the stock value with some weird quote, there are fierce fights for power both inside and outside the corporations. Stabbing coworkers or supposed partners, or partnering with supposed enemies, depending on their interests on each topic.

I left big companies and moved to small indie games partly because wanted to skip these politics/fights for power and focus instead just in making games and teaching about it.

 

[MrTroubleMaker]

 

[mayham2199]

Crazy. I wonder how many people would lose their jobs if they were to do this. I imagine AC and Rainbow is all they would really care about taking with them.