ubisoft acquisition

Report: Tencent Planning to Raise Stake in Ubisoft

According to a new report by Reuters, Chinese gaming giant Tencent is planning to increase its stake in Ubisoft, refueling speculations of an eventual Ubisoft acquisition. Tencent, which has a five percent stake in Ubisoft as of 2018, has reportedly reached out to the Guillemot family with its proposition. This news follows a statement by CEO Yves Guillemot earlier this year in which he said that he would consider acquisition offers that are in the interest of shareholders.

How likely is a Ubisoft acquisition?

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As previously mentioned, rumors of a Ubisoft acquisition first emerged when Guillemot said that he would consider takeover offers in the interest of shareholders. This was followed by reports that Guillemot, who famously fought off a hostile takeover by media conglomerate Vivendi, is looking to sell the company because there’s no one left in his family to take over the business. However, in May, another report emerged claiming that the Guillemots were actually preventing a potential takeover by partnering with a private equity firm to completely acquire the company.

Pertinent to mention that the Guillemot family currently owns 15 percent of Ubisoft, and according to Reuters, Tencent wants to become the single largest shareholder by offering up to 100 euros ($101.84) per share. This means Tencent is offering a 127 percent premium (Ubisoft stock is currently averaging 44 euros) to ward off competition and make the deal lucrative. At present, it’s unclear what Tencent’s end goal is how the Guillemots will respond to the offer, but a potential Ubisoft acquisition can’t be completely ruled out.

“Tencent is very determined to nail down the deal as Ubisoft is such an important strategic asset for Tencent,” said a Reuters’ source.

In other news, EA is reportedly making an Iron Man game in addition to Black Panther, and Microsoft is telling regulators that Activision Blizzard doesn’t make any must-have games so the acquisition should get the green light.