It’s been years sinceUbisoft is a potential prey for many potential buyers. After having somehow managed to get rid of Vivendi, the French publisher has continued to assert its independence and its desire to fend for itself. But that did not prevent it from opening up to various investors, such as Tencent in 2018, which took possession of 5% of Ubisoft’s shares. Today, the shadow of Tencent grows stronger, even if for the moment, the complete acquisition of Ubisoft does not seem to be on the agenda.
Win-win for Tencent and the Guillemot family?
NEWS: Tencent is NOT buying Ubisoft. But it is investing heavily in the company, announcing a new €300 million (about the same in $$) investment—49.9% stake—in Guillemot Bros, the company run by Ubisoft’s co-founders that has the largest stake in Ubisoft.
—Stephen Totilo (@stephentotilo) September 6, 2022
With the 5% purchased in 2018, Tencent has pledged not to increase its share in the company for at least 5 years. An agreement that is now over, because Tencent has obviously found a parade. Instead of investing in Ubisoft (although that’s the case too, you’ll see), Tencent has decided to invest in the Guillemot family companyUbisoft’s controlling majority company. Tencent therefore acquired 49.9% of the shares of Guillemot Brothers Limitedwhich suits everyone in the end.
With this operation, Guillemot Brothers Limited may increase its shares in Ubisoft to 29.9%which further strengthens its position as majority shareholder in the company. But it also allows Tencent to double its share at Ubisoft, from 4.99% to 9.99%. (shares that Tencent cannot sell for 5 years). Which therefore means that the Guillemots remain in the majority, but also that Tencent has a double hold on Ubisoft, both on the company itself, and on Guillemot Brothers Limited.
Does this mean that Tencent will buy the rest of Ubisoft in the coming months? Not necessarily according to journalist Stephen Tolito of Axios, who recalls that this operation is above all there to pay off some debts with the Guillemots, while strengthening the link between Ubisoft and Tencent for the distribution of games on Chinese territory. But this collaboration will now necessarily be followed very closely.