Tencent Holdings Ltd, the mega technology and entertainment conglomerate based in China, is seeking to raise its stake in French video game publisher Ubisoft Entertainment, according to a report released Reuters today.
Tencent previously acquired a five-percent stake in Ubisoft back in March 2018, at the cost of roughly €370 million (66 Euros per share). Tencent was one of many investors who snatched up the €2 billion worth of Ubisoft share that Vivendi was selling at the time.
According to the Reuters report, Tencent is aiming to “become the single largest shareholder” of Ubisoft following the reported upcoming purchase, and is also seeking to acquire a significant portion of that stake from the the Guillemot family, which currently owns 15 percent of Ubisoft. Reuters reports that Tencent could offer up to 100 Euros per share to acquire the additional stake in Ubisoft, way above the stock’s 44 Euro average price over the past three months.
The value of shares in Ubisoft and the Guillemot family holding company both jumped this morning following the initial report. Ubisoft’s shares, particularly, have jumped nearly 11 percent since the day’s open at the time of writing.
Tencent will also reportedly seek to purchase shares from public shareholders of Ubisoft, which currently make up 80 percent of the company’s total shares. Tencent’s potential increased stake in Ubisoft would see the company strengthen its grip on some of the biggest players and companies in video games.
Tencent already owns 100 percent of Riot Games and Turtle Rock Studios (Left 4 Dead developers), and owns significant stakes in companies like Supercell, Epic Games, and numerous others.
Published: Aug 4, 2022 11:10 am