Ubisoft is reportedly exploring the possibility of teaming up with Tencent to take the company private. After a turbulent year in which Ubisoft's market value dropped by over half, the Guillemot family (who hold a 14% stake in the company) and Tencent (with just under 10%) are considering a buyout. The primary motivation behind this move is to stabilize the company's finances after several underperforming game releases, including Star Wars: Outlaws and Assassin’s Creed Shadows, and to regain control of its strategic direction.

These discussions are still at an early stage, and while there’s no guarantee that a deal will be finalized, the potential privatization could allow Ubisoft to operate without the pressures of being a public company. It might also provide an opportunity to refocus on key intellectual properties and manage its restructuring efforts more effectively.

The idea of a buyout has been further encouraged by minority shareholders, such as AJ Investments, who have been urging the company to consider going private. AJ Investments has criticized Ubisoft's current management under the Guillemot family, suggesting that the leadership has failed to steer the company effectively, and they see a buyout as a path toward rejuvenating the business.

In addition to the Tencent and Guillemot-led privatization talks, rumors of interest from private equity firms like Blackstone Inc. and KKR & Co. have also fueled market excitement. These developments have led to a surge in Ubisoft’s share price, which had hit its lowest point in over a decade. Investors are growing increasingly optimistic about a potential acquisition or restructuring, with hopes that new ownership or management could lead to better financial outcomes.

The combination of these buyout rumors and investor dissatisfaction is driving speculation, which in turn has caused Ubisoft’s shares to spike. Investors are hopeful that new leadership or private ownership could lead to cost-cutting measures, improved efficiency, and better returns, even though concerns remain about potential layoffs and broader organizational changes.