Tencent and Guillemot Brothers evaluate the purchase of Ubisoft
Ubisoft, the famous video game developer responsible for sagas such as Assassin's Creed and Far Cry, is in the midst of a financial crisis that has caused a 50% drop in its shares over the last year. Faced with this situation, Tencent and the Guillemot Brothers, the company's founding family, are considering acquiring full control of the company, according to Bloomberg.
This potential deal would turn Ubisoft into a private equity firm, with Tencent holding a stake of less than 10%, with no veto rights or ability to sell its shares for the next five years. Meanwhile, the Guillemot Brothers would retain operational control of the company, in an attempt to stabilize it and keep other potential buyers away.
Key points:
• Financial crisis: Ubisoft has lost 50% of its stock market value in the last year.
• Possible acquisition: Tencent and the Guillemot Brothers are negotiating a deal to take control of the company.
• Market impact: Ubisoft shares jumped more than 30% following rumors of the takeover.
• Terms of the deal: Tencent would have no veto rights and could not sell its stake for five years.
• Future of Ubisoft: The goal is to revitalize the company and protect it from further acquisitions.
•
This move could mark a new stage in Ubisoft's history as it struggles to regain its position in the video game industry.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
This potential deal would turn Ubisoft into a private equity firm, with Tencent holding a stake of less than 10%, with no veto rights or ability to sell its shares for the next five years. Meanwhile, the Guillemot Brothers would retain operational control of the company, in an attempt to stabilize it and keep other potential buyers away.
Key points:
• Financial crisis: Ubisoft has lost 50% of its stock market value in the last year.
• Possible acquisition: Tencent and the Guillemot Brothers are negotiating a deal to take control of the company.
• Market impact: Ubisoft shares jumped more than 30% following rumors of the takeover.
• Terms of the deal: Tencent would have no veto rights and could not sell its stake for five years.
• Future of Ubisoft: The goal is to revitalize the company and protect it from further acquisitions.
•
This move could mark a new stage in Ubisoft's history as it struggles to regain its position in the video game industry.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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