Shares of Ubisoft see significant surge of more than 30 percent
Date
10/6/2024 4:18:23 AM
(MENAFN) Shares of Ubisoft experienced a significant surge of over 30 percent on Friday, driven by reports that Tencent, the Chinese tech giant, and the Guillemot family, who are minority stakeholders in the company, are exploring potential buyout options for the video game maker. According to a news outlet, the discussions aim to stabilize Ubisoft following a turbulent year, during which the company has seen its market value decline by more than half.
On Friday, shares jumped 33.5 percent, reaching approximately USD15.57, as investors reacted positively to the news, reflecting renewed interest in the company’s potential for recovery. However, both Ubisoft and Tencent have refrained from commenting on the matter, leaving investors speculating about the implications of the talks.
Ubisoft, based in France, is well-known for popular franchises such as "Assassin’s Creed." However, the company faced significant challenges recently, including a disappointing performance from its latest title, "Star Wars Outlaws," which failed to meet sales expectations. This led to a substantial drop in the company’s stock price last month, marking its lowest point in over a decade. Additionally, Ubisoft announced delays for its next installment of the "Assassin’s Creed" series, further heightening concerns among investors.
Yves Guillemot, Ubisoft's CEO, acknowledged the company's struggles, stating in a recent statement that its performance in the second quarter fell short of expectations. The ongoing discussions between Tencent and the Guillemot family highlight the urgent need for strategic measures to navigate the company through its current difficulties and restore investor confidence. As the situation develops, stakeholders will be closely watching for further updates on any potential buyout and the company's plans for recovery.
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