Ubisoft has also been the subject of takeover rumors time and again, but a new deal with the Chinese giant Tencent should make that less likely in the future.
Before Ubisoft takes a closer look at its own gaming future on Saturday, there is a lot going on on another front: The Chinese tech giant Tencent has acquired a large stake in the company and is investing heavily in Ubisoft, but that is not a takeover. Quite the opposite: rumors about a (hostile) takeover of Ubisoft, as there have been in the past – among other things, Vivendi was once very active in this regard – should make far fewer rounds in the future.
Reason: The Chinese conglomerate has continued on its growth path and has now also acquired a whopping new stake from Ubisoft. Nevertheless, in this context Tencent does not get a seat at the management level and only limited voting rights, so that Ubisoft will continue to be managed by the Guillemot brothers in the future and they can now be messed about much less from the outside.
How is that expressed in concrete terms? Tencent is investing a whopping 300 million dollars in the company Guillemot Brothers Limited, which corresponds to 49.9 percent of this company. Nevertheless, only 5 percent of the voting rights are associated with the acquisition. The 300 million are divided into a share purchase of 200 million dollars and a capital increase of 100 million dollars. The Ubisoft share is valued at 80 dollars per share.
Together with the investment in this limited company, Tencent will in turn join the circle of the largest shareholders in Ubisoft itself. This share in Ubisoft can now increase to up to 29.9 percent as a result of the investment. Tencent itself is allowed to increase its own direct stake in Ubisoft from 4.5 percent to 9.99 percent. This option is also accompanied by a ban on the sale of Ubisoft shares by Tencent for at least five years. Nevertheless, Tencent will not be able to increase its own Ubisoft stake and voting rights above 9.99 percent for at least eight years.
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