Tencent is reportedly planning to establish a joint venture with the Guillemot family, the founders of Ubisoft.

It was reported that Tencent (0700) and the Guillemot family (founders of Ubisoft) are considering setting up a new entity and incorporating some of Ubisoft's assets into it. Sources said Tencent and the Guillemot family are assessing which assets to include in the new entity and their valuation. Tencent representatives declined to comment.

The potential deal would allow Tencent to hold a stake in the new joint venture and gain greater control over some of Ubisoft's intellectual property rights, while expanding its gaming business outside of China. Negotiations are ongoing and both sides have yet to make a final decision.

Ubisoft announced on January 9 that it had appointed advisers to review and seek various options to enhance the company's value and said it would not comment on the process until it was completed. As of January 14, Ubisoft's share price closed at 11.70 euros, giving it a market capitalization of 1.557 billion euros (about Rmb11.74bn). Tencent and the Guillemot family together held 25.4 per cent of Ubisoft's equity and 29.6 per cent of its voting rights as of March 31, 2024.