Tencent Holdings and the founding Guillemot family of Ubisoft Entertainment are exploring various options, including a possible acquisition of the "Assassin's Creed" developer, according to a report by Bloomberg News on Friday.
The Guillemot Brothers and Tencent have engaged advisers to enhance Ubisoft's valuation and stabilize the organization, as reported by Bloomberg, citing sources familiar with the situation.
Following the news of the potential buyout, Ubisoft's stock experienced a nearly 30% increase. As of Thursday's market close, the company's market capitalization stood at 1.39 billion euros ($1.52 billion).
One of the strategies under consideration involves taking the French gaming company private, the report indicated.
Neither Tencent nor the Guillemot family responded immediately to requests for comments from Reuters, and Ubisoft declined to provide any statements.
This year, Ubisoft's shares have plummeted by more than 50%, significantly underperforming compared to its competitors, largely due to recent game releases that did not meet expectations.
In September, the company postponed the launch of "Assassin's Creed Shadows" by three months and revised its net bookings forecast downward.
Last week, Reuters reported that AJ Investments, based in Slovakia, had garnered support from 10% of Ubisoft shareholders in its efforts to take the company private, sell it to a third party, or initiate changes in upper management.
Ubisoft is managed by its founding family, the Guillemots, who hold a 15% stake in the company. Chinese gaming powerhouse Tencent follows closely with an ownership of just under 10%, as reported by LSEG data.