Tencent, which already owns 5% of the French company, would consider acquiring a larger stake in Ubisoft. At least that’s what four sources familiar with the matter told the Reuters news agency.
According to these sources, Tencent contacted the Guillemot family (founders of Ubisoft) and informed them of their desire to increase their contribution to society. Two of them claim that the Chinese company would like to become the main shareholder. While the Guillemot family owns the largest stake, they only own 15% of Ubisoft stock. Tencent could therefore also turn to other shareholders to achieve its goal.
While it offered $66 in 2018, it could offer up to $100 per share to acquire an additional stake. This represents 127% of the stock’s average value over the last three months (May-July 2022). This operation takes place in a context where regulation of the video game sector in China is becoming increasingly restrictive. In addition, the Chinese market is becoming increasingly competitive. This trend is confirmed in the numbers. Tencent’s revenue fell 1% domestically, while overseas revenue rose 4% in the first quarter. So this strategy of asset diversification appears to be a matter of long-term survival.
Contacted by Reuters, the two companies declined to comment on the claims. That could hurt a potential deal. We are therefore awaiting further information on this subject.
