Ubisoft buyout talks are reportedly progressing, but there's one small hitch: The Guillemot family wants to stay in charge, but Tencent isn't so sure about that

The possibility of some sort of major shakeup at Ubisoft grew a little more distinct today as Reuters reports that company shareholders are now looking at how to structure a buyout of the company that, ironically, would leave the founding Guillemot family in control.

The possibility of a buyout was first reported in October, although at that point it seemed more of a kick-around idea than anything else: Ubisoft is in trouble, and something—just about anything—needs to be done. This new report, citing two people "familiar with the matter," sounds like more of a concrete step forward, in the sense that there is an active push toward making it happen.

The sticking point, according to the report, appears to be over who's left in charge if a deal is done. Sources cited by Reuters say the Guillemot family, which founded Ubisoft in 1986, want to retain control of the company. Tencent, Ubisoft's second-largest shareholder and the Guillemot's presumptive partner in this boardroom boogie, wants more say in board-related matters, and is reportedly waiting for an agreement on that front—which, as I take it, essentially means capitulation—before committing to financing the deal.

It's an interesting spot for the Guillemots. Ubisoft fought a protracted war several years ago to maintain its independence from Vivendi, the French media conglomerate that launched a hostile takeover bid in 2016, and CEO Yves Guillemot has been clear in subsequent years that he has no interest in being acquired by anyone.

But Ubisoft is also struggling badly right now: Sales of Star Wars Outlaws, which should have been a sure-fire hit, were "softer than expected," and Assassin's Creed Shadows, the next addition to Ubisoft's biggest and most popular series, was delayed for three months at the last minute, from November 15 to February 14, 2025.

More recent news has not been better. Earlier this week, Ubisoft pulled the plug on XDefiant, its planned Call of Duty competitor—an especially ugly move because it happened less than three months after executive producer Mark Rubin insisted XDefiant "is absolutely not dying." The end of XDefiant also resulted in the layoff of up to 277 employees, and the closure of two production studios.

All of that is bad news for gamers, but the real issue is Ubisoft's financial position. The company's share price has slid from a high of more than $85 in early 2021 to just over $13 today. Whether anything ultimately comes from these negotiations is an open question for now, but pressure from shareholders is growing, and that puts a timer on things: If the Guillemots don't do something, they may soon find that something is done for (or to) them.