Tencent reportedly wants a greater say over Ubisoft as investment discussions continue

Discussions are reportedly continuing between Tencent and Ubisoft over a potential deal to take the company private.

In October, Bloomberg sources claimed that the Chinese conglomerate – which already owns around 10% of Ubisoft – and Guillemot Brothers Ltd had been speaking with advisers to explore ways to stabilize Ubisoft, following a year in which its market value has more than halved.

Those discussions are said to have included the possibility of the pair teaming up to take Ubisoft private, although talks were said to be at an early stage.

A new Reuters report published on Friday now claims that Ubisoft shareholders are considering how to structure a possible buyout of the company, without reducing the Guillemot family’s control.

Tencent is claimed to be undecided over whether to participate in the buyout and increase its stake in the company, reportedly because it has asked for a greater say on future board decisions.

According to Reuters, discussions between the two are ongoing as Tencent also wants to prevent any potential hostile takeover of Ubisoft by other investors.

“We remain committed to making decisions in the best interests of all of our stakeholders” a spokesman for Ubisoft said. “In this context, as we have already indicated, the Company is also reviewing all its strategic options.”

In September, Ubisoft‘s share price dropped to its lowest point in nearly 11 years. The most recent dips followed Ubisoft’s announcement that it had delayed Assassin’s Creed Shadows, and the disappointing launch performance of Star Wars Outlaws.

Earlier in September, a minority investor called on Ubisoft’s management to take the company private or let it be sold to a strategic investor.