The Strategist

Tencent to grow its stake in Ubisoft

08/05/2022 - 03:53

Tencent Holdings Ltd. intends to raise its ownership of Ubisoft Entertainment SA, a French video game company. Thus, the Chinese gaming is once again refocusing on the world's video game market, reports Reuters.

Tencent, the biggest social network provider and video game developer in China, acquired a 5% interest in Ubisoft in 2018. The company has approached the Guillemot family, who created the French business, and indicated interest in raising its investment, according to the sources.

Tencent's desire to raise its position in Ubisoft, which is valued at $5.3 billion, has not been made public yet, but according to two sources, the company intends to buy more shares in order to become the only shareholder of the French company.

According to three sources, Tencent plans to purchase a portion of the additional share held by the Guillemot family, which controls 15% of Ubisoft, the maker of the well-known "Assassin's Creed" video game franchise.

Two sources claim that Tencent may offer up to €100 euros for every extra Ubisoft share. When it acquired a 5% stake in 2018, it paid €66 per share.

Ubisoft papers increased by more than 10% after the report.



< >

Thursday, April 25th 2024 - 03:04 Italian watchdog fines Amazon €10 mln