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[Leyasu]

HONG KONG, Aug 4 (Reuters) - Tencent Holdings Ltd plans to raise its stake in French video game group Ubisoft Entertainment SA as the Chinese gaming giant pivots to the global gaming market, four sources with direct knowledge of the matter told Reuters.

China's largest social network and gaming firm, which bought a 5% stake in Ubisoft in 2018, has reached out to the French firm's founding Guillemot family and expressed interest in increasing its stake in the firm, the sources said.

It is not clear how much more Tencent plans to own in Ubisoft, valued at $5.3 billion, but Tencent aims to become the single largest shareholder of the French company with an additional stake purchase, two of the sources said.

Tencent plans to buy a part of the additional stake in Ubisoft, the maker of the blockbuster "Assassin's Creed" video game franchise, from the Guillemot family, which owns 15% of the firm, three of the sources said.

Tencent could offer up to 100 euros ($101.84) per share to acquire the additional stake, two of the sources with knowledge of the internal discussions, said. It paid 66 euros per share for the 5% stake in 2018.

At the top end of 100 euros per share, Tencent's offer will be a premium of 127% to the stock's 44 euros average price over the past three months, and is close to its historical price ceiling at 108 euros in 2018.

Tencent has submitted to the Guillemot family a term sheet - a non-binding offer describing the basic terms and conditions of an investment, said one of the people, with a price "way above" the company's current price to ward off potential competition.

The aggressive offer also comes as global gaming power houses have been rushing to snap up quality independent game makers in recent years, which are in scarcity, two of the sources said.

Exclusive: Tencent seeks to raise stake in 'Assassin's Creed' maker Ubisoft - sources​

Tencent Holdings Ltd plans to raise its stake in French video game group Ubisoft Entertainment SA as the Chinese gaming giant pivots to the global gaming market, four sources with direct knowledge of the matter told Reuters.
www.reuters.com

Another publisher getting acquired possibly.

Spoiler

Shamelessly ripped from another forum

 

[DeepEnigma]

 

[Bernd Lauert]

Another hostile takeover attempt coming for Ubisoft? I remember when Vivendi tried it back in the day.

Also this should remove any delusions about Sony buying Epic. Tencent is willing to pay a 127% premium on the stock, lmao.

 

[ManaByte]

There goes plans for an open world 100 Acre Wood game where you play as Winnie the Pooh.

 

[lh032]

 

[Fuz]

Like I was lacking reasons to avoid Ubi games.

 

[Lady Jane]

So a decade ago, the big three publishers were EA, Ubisoft, and Activision

Activision gotten eaten up, EA is hinting at it, and now Ubisoft is being slowly devoured?

It's all so bad lmao. Can't wait for our the Microsoft vs Tencent generation.

 

[CatLady]

Well that sucks. Unlike most here, I'm not a Ubi hater. I am a Tencent hater.

 

[LordCBH]

Just what we need, a shitty Chinese megacorp buying everything up.

 

[FingerBang]

At this point I'd rather have MS or Sony buy it, and I've been pretty vocal being against big acquisitions

 

[El Pistolero]

At this point I'd rather have MS or Sony buy it, and I've been pretty vocal being against big acquisitions

Nah, Tencent will have a multiplatform mandate, so there is no risk of any of the properties heading exclusively to one machine. It's a better outcome, imo.

 

[blacktout]

Well that sucks. Unlike most here, I'm not a Ubi hater. I am a Tencent hater.

Ubisoft is kind of a mess. Tencent is evil.

I think you'd have to have seriously lost perspective to cheer this on.

 

[Rubytux]

I have never played Assasins Creed, but i think the industry needs a new direction.

This recycle-IP situation needs new ideas.

 

[Lady Jane]

So that's why we haven't seen a Japanese AC

 

[Elios83]

I wonder how the Guillemots will react to this given their resistance to previous attempts by Vivendi.

 

[Skifi28]

Well that sucks. Unlike most here, I'm not a Ubi hater. I am a Tencent hater.

Did they kill your cat too?

 

[jhjfss]

I wonder how the Guillemots will react to this given their resistance to previous attempts by Vivendi.

They are the ones selling their shares to Tencent. They are getting over 2x the value for each share.

 

[Neofire]

China has not only been buying up US real estate they aren't leaving the video game sector untouched either it seems lol.

 

[Elios83]

They are the ones selling their shares to Tencent. They are getting over 2x the value for each share.

Ah I missed that (still at work..) that's really interesting...to convince them to sell even if they got offered a lot of money it means they probably believe the ship is sinking....

 

[LQX]

Bu,bu,bu,bu,but Microsoft.

 

[chromhound]

The SEC better block that shit ASAP

 

[N0S]

AssCreed China let's go

 

[Shut0wen]

Honestly id much rather tencent then sierra, hopefully force ubi to avoid GAAS trend and actually go back to making something decent but thats hopeful thinking since no one talented actually works there and they employ nothing but script kiddies

 

[Black_Stride]

100 per share?
In 2022?
Does Ubisoft even have a big game lined up for 2022?

Sell!
SELL!

 

[TheGodfather07]

I couldn't care less what happens to publishers like EA, Activision and ubisoft. I haven't played a game from any of these publishers in years and I doubt I will, anytime soon. What am I missing? Fifa, cod and AC? I'm actually gaining by not playing these shite games.

 

[Razvedka]

West needs to steer clear of the Chinese.

 

[bitbydeath]

 

[balls of snow]

Well it was always either China or Saudi Arabia..thought gaf would be happier, no more woke shit right.

 

[DeepEnigma]

100 per share?
In 2022?
Does Ubisoft even have a big game lined up for 2022?

Sell!
SELL!

What if I told you it's not about profit.

Well it was always either China or Saudi Arabia..thought gaf would be happier, no more woke shit right.

Oh, they'll still push that in western nations. Kind of like TikTok.

 

[digital_ghost]

Honestly id much rather tencent then sierra, hopefully force ubi to avoid GAAS trend and actually go back to making something decent but thats hopeful thinking since no one talented actually works there and they employ nothing but script kiddies

Sierra? Didn't they stop making games years ago?

 

[Himuro]

Fuck China.

 

[Magic Carpet]

Just need to change the name to Ubicent.

 

[Kerotan]

Nah, Tencent will have a multiplatform mandate, so there is no risk of any of the properties heading exclusively to one machine. It's a better outcome, imo.

Could tencent make their own console?

 

[xrnzaaas]

Remember when players were upset about plans of Ubisoft's aggressive takeover some years back? Couldn't care less about what happens to them right now.

 

[DeepEnigma]

Remember when players were defending plans of Ubisoft's aggressive takeover some years back? Couldn't care less about what happens to them right now.

Would much rather have Vivendi than commies.

 

[xrnzaaas]

Would much rather have Vivendi than commies.

Yes this is worse even if you're under the illusion of having creative freedom from Tencent. They definitely picked a good moment with Ubisoft being weak from not having successful releases (except for AC).

 

[Kataploom]

As if I needed more reasons to happily avoid Ubisoft as I've done since last gen lol

 

[Bernd Lauert]

Yes this is worse even if you're under the illusion of having creative freedom from Tencent.

There can be creative freedom under Tencent. My favorite game is 100% owned by Tencent and there was zero impact on the game's development. The Chinese version of the game is an entirely seperate entity and is obviously quite different from the original, but that hasn't impacted the original at all.

 

[xrnzaaas]

There can be creative freedom under Tencent. My favorite game is 100% owned by Tencent and there was zero impact on the game's development. The Chinese version of the game is an entirely seperate entity and is obviously quite different from the original, but that hasn't impacted the original at all.

I know things won't change right away but I'd still hold my reservations for the future, especially censoring stuff if Tencent demands it for regions outside of China as well.

 

[Edgelord79]

 

[8BiTw0LF]

China:

 

[Roman Empire]

The Guillemot Family will sell their souls even to the Devil if it makes them that much money. Well, if they still have souls by this point.

Fuck Ubisoft.

 

[Jaybe]

Maybe EA and Ubi can get married and save us from the CCP

 

[BennyBlanco]

 

[MScarpa]

And people bitch about Microsoft or Sony buying Ubisoft. This would be a fucking travesty if Tencent gets them. I'd be devastated.

 

[Mithos]

Last game I played from UbiSoft was Freedom Cry. That's a 2013/2014 game right?

 

[ChorizoPicozo]

Nice

 

[Negotiator101]

Bu,bu,bu,bu,but Microsoft.

But what?

 

[drotahorror]

Two giant anti consumer businesses join as one. Keep it up.

 

[El Pistolero]

Could tencent make their own console?

Why would they? There is zero need for them to invest billions of dollars to make the kind of money they are raking in right now. The barriers of entry are tough to crack when it comes to launching a console, and the videogames industry is headed toward a platforms "agnostic" approach anyway, with the rise of mobile, services, streaming and PC convergence. Tencent is at least 10 years late to the hardware market, and, frankly, they could not care less about it right now.