Tencent aims to raise stake in 'Assassin's Creed' maker Ubisoft
Tencent Holdings Ltd plans to raise its stake in French video game group Ubisoft Entertainment SA as the Chinese gaming giant pivots to the global gaming market, four sources with direct knowledge of the matter told Reuters.
China's largest social network and gaming firm, which bought a 5% stake in Ubisoft in 2018, has reached out to the French firm's founding Guillemot family and expressed interest in increasing its stake in the firm, the sources said.
It is not clear how much more Tencent plans to own in Ubisoft, valued at $5.3 billion, but Tencent aims to become the single largest shareholder of the French company with an additional stake purchase, two of the sources said.
Tencent plans to buy a part of the additional stake in Ubisoft, the maker of the blockbuster "Assassin's Creed" video game franchise, from the Guillemot family, which owns 15% of the firm, three of the sources said.
Tencent could offer up to 100 euros ($101.84) per share to acquire the additional stake, two of the sources with knowledge of the internal discussions, said. It paid 66 euros per share for the 5% stake in 2018.
Ubisoft shares surged more than 10% after the Reuters report.
Two of them added the Chinese firm will also seek to acquire shares from public shareholders of Ubisoft, to boost its ownership and become the single-largest shareholder.
About 80% of the French firm's shares are owned by public shareholders, according to its latest annual report.
All the sources declined to be named as they are not authorised to speak to the media.
Tencent and Ubisoft declined to comment.
Representatives of the Guillemot family could not be immediately reached for comment.
The details of the deal have yet to be finalised and are subject to change, said the people
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