Report: Tencent plans to raise stake in Ubisoft and become its single largest shareholder
Tencent continues to pursue Western expansion amid ongoing pressure in China. The company has reportedly reached out to the Guillemot family to increase its stake in the Assassin’s Creed maker.
Assassin’s Creed: Revelations
Reuters reported the news on August 4, citing four anonymous sources with direct knowledge of the matter.
- Tencent, which bought a 5% stake in the French publisher in 2018, made an offer to Ubisoft’s founding Guillemot family. They currently own a 15% stake in the company.
- The Chinese tech giant reportedly wants to buy a part of the additional stake in Ubisoft from the Guillemot family.
- Tencent plans to act aggressively, offering up to €100 ($101.84) per share, which is up 127% from the stock’s average price of €44 over the past three months.
- It is also close to Ubisoft’s all-time high of €108 per share in 2018.
- According to Reuters sources, Tencent is willing to pay above the current market price to prevent potential competition. It also wants to increase its stake in Ubisoft to offset the pressure it faces in China and strengthen its positions in the West.
- It is worth noting that around 80% of Ubisoft shares are currently owned by public shareholders. So if the deal with the Guillemot family is closed, Tencent will become the single largest shareholder of the French developer.
The first Ubisoft buyout rumors started circulating earlier this year, with some sources saying that the company’s shareholders will oppose any takeover unless the price reaches at least €60-70 per share.
Ubisoft stock is now sitting at €48.8 per share. The price went up 16% soon after Reuters published its report about Tencent’s potential investment.
