Ubisoft averts hostile takeover bid by Vivendi

Cal Jeffrey

Posts: 2,319   +534
Staff member

GamesIndustry.biz notes that Vivendi currently has about 6.7 percent of share capital tied up in deals with two “financial institutions.” While that waits to be freed up, the corporation will sell about 0.9 percent of its Ubisoft holdings on October 1, 2018. The rest will be sold on March 5, 2019. Better put in your buy order now.

Vivendi’s decision to sell off interest in Ubisoft is a 180-degree turnaround from its previous intentions. The media conglomerate began picking up shares in the game maker about two years ago in a bid for a hostile takeover. It had just successfully gained control of Gameloft by similar means.

French law would have required Vivendi to pursue a controlling stake once it acquired 30 percent of Ubisoft’s stock. It seemed hellbent on doing just that until last November. An upturn in the studio’s valuation and a less than stellar Vivendi earnings report threw a wrench into its takeover plans.

Since then Ubisoft shares have continued to climb which is likely the company’s reason for nixing its buyout intentions. The Motley Fool reports that as of April this year, stock values in the studio have grown over 400 percent since Q3 2015. The largest growth occurred after Vivendi began picking up shares, so the selloff will still net a win for the conglomerate.

Once Vivendi trades the last of its Ubisoft stock it said it would not purchase any more for at least five years. So for now at least, the studio is safe from the predatory firm.

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Kytetiger

Posts: 48   +14
Interesting actually. Vincent Bolloré has been building for many years a company that could rival WB or Comcast. If he withdrew from Ubisoft, knowing that videogame's market is now higher than cinema, it means that something is happening in the media industry. :-o
 

PinothyJ

Posts: 490   +39
As long as they keep their Ubi Art studio alive to produce/develop smaller titles like Child of Light and Rayman I am a happy little Vegemite.