Tencent’s Share of French Game Firm Ubisoft Rises to 9.99%
The board of directors of French game company Ubisoft on September 6 authorized Chinese tech and gaming giant Tencent to increase its direct shareholding ratio from 4.5% to 9.99%.
Tencent will invest 300 million euros in Guillemot Brothers Limited to buy 49.9% of the latter’s shares and obtain 5% of voting rights. Of this amount, Tencent will pay 200 million euros to buy shares at an implied value of 80 euros and invest a further 100 million euros, according to the statement.
In addition, Tencent is providing Guillemot Brothers Limited with a long-term unsecured loan to refinance its debt and provide additional financial resources that can be used to acquire equity in Ubisoft.
Under the agreement, Tencent cannot sell Ubisoft’s shares for five years and cannot increase its stake in Ubisoft for eight years. Guillemot Brothers Limited remains exclusively controlled by the Guillemot family. Tencent will not be represented on its board of directors and will not obtain any consent or veto rights over the business. In addition, Tencent plans to help Ubisoft bring AAA titles to mobile platforms and Ubisoft’s PC games to the Chinese market.
Ubisoft is an international producer, publisher and distributor of games. On the basis of cooperation with established game companies, it is also constantly launching unique products to strengthen its influence in the international market. Some of its top titles are Assassin’s Creed, Prince of Persia, Rainbow Six, and others. Tencent already took a 5% stake in Ubisoft in 2018.
“We are confident in the future of the strategic partnership with Tencent, and in bringing our AAA products to mobile devices,” Ubisoft said.
SEE ALSO: Tencent and Ubisoft Jointly Developing New Games
Ubisoft’s online showcase, Ubisoft Forward, will return on September 10 (CEST), with brand-new updates on the upcoming Mario + Rabbids Sparks of Hope and Skull and Bones, and a special Assassin’s Creed showcase that will unveil the future of the franchise. Ubisoft will launch a special promotion for Chinese players, and Assassin’s Creed, Far Cry, and other games will have new historic discounts.