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The Chinese tech giant Tencent just upped their minority stake in Ubisoft. This move comes about a week after competing Chinese tech giant NetEase announced their acquisition of the other France-based development studio, Quantic Dream.
The deal, valued at €300 million, saw Tencent acquiring a minority 49.9% passive stake in Guillemot Brothers Limited, the parent company behind Ubisoft. The deal is valued at €300 million but gives Tencent just a 5% voting right in Guillemot Brothers Limited and no presence in their Board of Directors.
Ubisoft has also allowed Tencent to increase its stake in them from 4.5% to 9.99%. This increase of ownership, as it applies specifically to Ubisoft, still does not give Tencent any significant voting rights nor does it allow for Tencent to have anybody on Ubisoft's Board of Directors.
Tencent will not be allowed to sell its shares for the next five years. They are also not able to increase its stake beyond 9.99% for the next eight years.
Ubisoft's Yves Guillemot shared a little statement about Tencent's stake increase.
"The expansion of the concert with Tencent further reinforces Ubisoft’s core shareholding around its founders and provides the company with the stability essential for its long-term development
"In a context where platforms and business models are converging, this transaction, which validates our strategy and highlights the strong intrinsic value of the assets we have built over the long term, is excellent news for our teams, gamers and shareholders. Tencent is a key shareholder partner for many of the industry’s leaders, who have created some of the most outstanding video games. This transaction reinforces our ability to create strong value over the coming years."
"In a context where platforms and business models are converging, this transaction, which validates our strategy and highlights the strong intrinsic value of the assets we have built over the long term, is excellent news for our teams, gamers and shareholders. Tencent is a key shareholder partner for many of the industry’s leaders, who have created some of the most outstanding video games. This transaction reinforces our ability to create strong value over the coming years."
"The team at Ubisoft has shown an impressive ability to consistently create world-class entertainment along with a diverse portfolio of brands that include some of the most successful franchises in the industry
"We are excited to expand our engagement with the founders, the Guillemot family, as Ubisoft continues to develop immersive game experiences, and to bring some of Ubisoft’s most well-known AAA franchises to mobile. This agreement also aligns with our philosophy to invest alongside creative founders with full confidence that they will lead their companies to new heights."
"We are excited to expand our engagement with the founders, the Guillemot family, as Ubisoft continues to develop immersive game experiences, and to bring some of Ubisoft’s most well-known AAA franchises to mobile. This agreement also aligns with our philosophy to invest alongside creative founders with full confidence that they will lead their companies to new heights."
