Tencent invests 300 million euros into Ubisoft’s largest shareholder
Ubisoft announced that Tencent has invested about 300 million euros in Guillemot Brothers Limited, its largest shareholder. Tencent acquires a 49.9% economic stake with 5% voting rights in Guillemot Brothers Limited. This move allowed Tencent to increase its shareholding in Ubisoft from 4.5% to 9.99%.
“The expansion of the concert with Tencent further reinforces Ubisoft’s core shareholding around its founders and provides the company with the stability essential for its long-term development,” said Yves Guillemot, CEO and Co-Founder, Ubisoft.
In a context where platforms and business models are converging, this transaction validates Ubisoft’s strategy and highlights strong intrinsic value built over a long period of time. The good news for Ubisoft’s team, shareholders, and gamers, this transaction enhances Ubisoft’s ability to create strong value for years to come.
Of the 300 million euros invested by Tencent, 200 million are used for acquisitions and 100 million are capital increases. Ubisoft’s implied valuation is 80 euros per share. Tencent cannot sell Ubisoft’s shares for the next five years, and cannot increase its stake in Ubisoft to more than 9.99% of Ubisoft’s capital and voting rights for eight years. After this transaction, Ubisoft’s governance will remain unchanged, and Tencent will not have any operational veto power.
In addition, Tencent provided a long-term unsecured loan to Guillemot Brothers Limited to refinance its debt and provide additional financial resources that could be used to acquire Ubisoft’s stake.
It was previously reported that Tencent plans to increase its stake in Ubisoft, most likely directly from the Guillemot family, which currently holds 15% of the shares. This announcement also confirmed the relevant rumors. Next, Ubisoft will also cooperate with Tencent to introduce the franchise rights of its 3A games to the mobile platform.