Tencent wants to increase its stake in Ubisoft

Over the past few years, Tencent has acquired or invested in a number of game developers or studios. Most of the time, Tencent does not participate in the operation of the other party and maintains its original operation method. Tencent currently owns about 5% of Ubisoft, but it may become more in the future.

According to Reuters, Tencent plans to increase its stake in Ubisoft, and may even have plans to become the largest single shareholder. It is rumored that some of the shares that Tencent purchased are likely to be directly obtained from the Guillemot family, which currently holds 15% of the shares. Representatives of Tencent flew to France to meet with Guillemot in May this year and provided the other party with a very detailed offer with relevant terms. The pricing is also very attractive, with a rumored price of around 100 euros per share, compared to the average Ubisoft share price of 44 euros over the past few months, a premium of 127%.

In April, it was reported that Ubisoft had compiled its books with the help of an external audit firm and was thought to be preparing for a sale. A few years ago, Ubisoft suffered a hostile takeover by Vivendi and got out of the predicament with the help of Tencent. This is when Tencent’s 5% Ubisoft shares were acquired. Some time ago, Ubisoft also announced the results for the first quarter of fiscal 2023, showing that revenue fell by nearly 10% year-on-year, several games will be delayed or canceled, and the financial situation next year is not optimistic.