Tencent stake in Ubisoft may get bigger in the future. It’s been reported that Tencent is considering increasing its stake in Ubisoft to expand its global footprint. Back in 2018, Tencent acquired a 5% stake in Assassin’s Creed publisher, but new reports state that Tencent may be looking to increase its stake in the company.
BREAKING: Reuters reports that Tencent is looking to become the biggest shareholder in gaming giant Ubisoft.
— The Spectator Index (@spectatorindex) August 4, 2022
Tencent is intending on becoming Ubisoft‘s largest shareholder, according to sources of direct knowledge in this matter. In the planned purchase, Tencent will buy a part of its stake from Ubisoft’s founding Guillemot family, who currently own 15 percent of Ubisoft. It seems as though Tencent plans to overtake them in shares.
As of right, it’s not exactly clear how much Ubisoft Tencent wants to own. Ubisoft is currently valued at $5.3 billion, so becoming the biggest shareholder of a company of this size will require a considerable amount of money. Tencent already has a stake of 5% in the company and is looking to increase it.
The planned stake purchase, if it happens, will be Tencent’s first major foreign deal since late 2020 due to regulations. The deal will help the company by relieving some of the pressure in Tencent’s domestic market. Tencent mainly operates in China, which is also the world’s largest video game market. The Chinese video game market has also become very competitive as of late, so the acquisition may help Tencent in that area as well.
