Home News Tencent Stake in Ubisoft May Grow Larger

Tencent Stake in Ubisoft May Grow Larger

by Abdul Wassay
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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.

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.

Two of the sources close to the matter said that Tencent is willing to offer up to 100 euros ($101.84) per share when they acquire the additional stake. Back in 2018, when Tencent bought a 5% stake in the company, they paid 66 euros per share. The details of the stake acquisition are not yet finalized according to sources and could change at any moment. The sources also stated that Tencent’s senior executives flew to France back in May to meet the Guillemot family and talk to them about the purchase.

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.

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