Tencent (00700) plans to establish a joint venture with the founding family of Ubisoft, Guillemot.

Reports suggest that Tencent (00700) and the Guillemot family (founders of Ubisoft) are considering establishing a new company and incorporating some Ubisoft assets into it. Sources familiar with the matter revealed that Tencent and the Guillemot family are evaluating which assets to include in the new entity and their valuation. Tencent representatives declined to comment on the matter. Insiders indicate that the potential deal would allow Tencent to hold shares in the new joint venture and gain greater control over some IP rights of Ubisoft, while expanding its gaming business overseas in China. Negotiations are still ongoing, and a final decision has not been made by either party. It is noted that on January 9th, Ubisoft announced the appointment of advisors to review and seek various ways to enhance the company's value, stating that they would not comment until the process is completed. As of the close of January 14th, Ubisoft's share price was 11.70 per share, with a market value of 1.557 billion (approximately 11.74 billion RMB). As of March 31, 2024, Tencent and the Guillemot family collectively owned 25.4% of Ubisoft's share capital and 29.6% of voting rights.