Tencent, the industry leader in Chinese gaming, intends to increase its stake in Ubisoft and potentially become the company’s largest shareholder.
According to Reuters reports, China’s biggest gaming company, which acquired a 5% share in Ubisoft in 2018, has approached the Guillemot family (shareholders of Ubisoft) and shown interest in increasing its shareholding. In order to increase its presence in the global gaming market, Tencent is apparently trying to increase its investment in French gaming titan Ubisoft.
Tencent has a plan to acquire the majority of stakes in Ubisoft
Tencent purchased a 5% stake in Ubisoft in 2018, following a flare-up in relations between Ubisoft and shareholder Vivendi that led to Vivendi relinquishing all of its stock and committing to refrain from buying a stake in the firm again.
Per a source who spoke to Reuters, “Tencent is highly keen to seal the acquisition as Ubisoft is such a vital strategic asset for Tencent.” Tencent is reported to be willing to pay up to 100 euros per share to gain its further shares, a significant increase over its first acquisition, for which it spent 66 euros per share. Sources also verified Tencent’s plans to buy shares from publicly listed owners in order to take over the company’s top position.
Although officials from Tencent discussed with the Guillemot family in May and have presented a proposal with the company’s high price, it is unknown how far along any potential deals are because Reuters’ sources claim that none have been completed.
CEO Yves Guillemot of Ubisoft stated in February that the business is not actively seeking a buyer but that he and the executive directors may consider any bids. Therefore, there is a probability that the deal might go well. The titles like Rainbow Six, Watch Dogs, and other games developed by Ubisoft became well-known and well-liked among gamers worldwide. Ubisoft is valued at $5.3 Billion and is among the largest and most popular companies in the video game business.