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Tencent Reportedly Seeking to Increase Its Stake in Ubisoft

Tencent Reportedly Looking to Increase Its Stake in Ubisoft

by William D’Angelo , posted 7 hours ago / 734 Views

Tencent is reportedly seeking to increase its stake in the French gaming publisher and developer Ubisoft, in accordance with Reuters who spoke with four sources acquainted with the problem.

The Chinese social networking and gaming firm bought a five percent stake in Ubisoft in 2018 and recently spoke with Ubisoft’s founding Guillemot family with interest to improve its stake.

It is not clear just how much more stake Tencent really wants to buy in Ubisoft, that is currently valued at $5.3 billion. However, Tencent does desire to end up being the largest shareholder of Ubisoft, in accordance with two of the sources.

Three of the sources said Tencent is looking top buy portion of the stake from the Guillemot family, which owns 15 percent of the shares in Ubisoft. Tencent would also seek to obtain shares from public shareholders.

Tencent may potentially offer just as much as 100 per share to obtain the excess stake in Ubisoft, that is a 127 percent premium on the common price of the stock in the last 90 days and is near its historical ceiling of 108 in 2018. Tencent paid 66 per share because of its five percent stake in 2018.

“Tencent is quite determined to nail down the offer as Ubisoft is this important strategic asset for Tencent,” said one source.

One source claims Tencent has submitted a non-binding term sheet to the Guillemot family describing the essential conditions and terms of the investment.

A life-long and avid gamer,William D’Angelowas initially introduced to VGChartz in 2007. After years of supporting the website, he was induced in 2010 as a junior analyst, working his way around lead analyst in 2012 and overtaking the hardware estimates in 2017. He’s got expanded his involvement in the gaming community by producing content by himselfYouTube channelandTwitch channel. It is possible to contact the writeron Twitter@TrunksWD.

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