Shareholders of Ubisoft Entertainment SA, the company behind popular game series like 'Assassin's Creed' and 'Just Dance', are exploring a potential buyout while ensuring the founding Guillemot family retains control, as per a recent report by Reuters.

The Guillemot family, which founded Ubisoft, owns 15% of the company and controls about 20.5% of voting rights. They are reportedly in discussions with Tencent, Ubisoft's second-largest shareholder with nearly 10% ownership, and other investors about financing a management-led buyout.

According to sources, Tencent has not yet decided whether to increase its stake, explains the report. The Chinese gaming giant wants a stronger say in board decisions, such as cash flow distribution, if it provides financial backing. However, the Guillemot family prefers to maintain their current level of control.

Talks remain ongoing, with Tencent also aiming to prevent any potential hostile takeover by other investors. The company may opt to keep its stake unchanged, considering it sufficient for maintaining its business partnership with Ubisoft.

Ubisoft's shares surged by 16% following news of the talks. However, the company has faced challenges, including delayed game launches and the discontinuation of its XDefiant project. These issues led to studio closures in San Francisco and Osaka and reduced operations in Sydney.

In October, Ubisoft stated it was reviewing strategic options amid pressure from minority shareholders seeking a sale or a private takeover. Despite these uncertainties, the company has reiterated its commitment to making decisions that benefit all stakeholders, adds the Reuters report.