To be clear, Tencent hasn’t bought Ubisoft, but it has placed itself in a much more meaningful position to the company, by purchasing a 49.9% stake in Guillemot Brothers Limited, the holding company run by Ubisoft’s founders.
That investment has allowed Tencent to then further its investment in Ubisoft itself, upping its share to 9.99%, though part of the deal ensures that Tencent isn’t allowed to raise that stake for another eight years.
Tencent invested €300 million into Guillemot Brothers for its almost majority share, though Ubisoft is clear in saying that its “governance is unchanged, and the Guillemot family retains exclusive control of Guillemot Brothers Limited.”
It’s also interesting to note that Tencent will not get a seat on the board of directors, nor does it retain any veto or consent rights on the company’s proceedings.
“The expansion of the concert with Tencent further reinforces Ubisoft’s core shareholding around its founders and provides the company with the stability essential for its long-term development.” said Yves Guillemot, co-founder and chief executive officer at Ubisoft.
“Tencent is a key shareholder partner for many of the industry’s leaders, who have created some of the most outstanding video games. This transaction reinforces our ability to create strong value over the coming years.”
So while this deal doesn’t mean Tencent has ‘acquired’ Ubisoft, it does deepen the relationship between both companies, and further entrench Tencent’s influence.
What this deal seemingly does mean, however, is that Ubisoft’s founding Guillemot family has been given the support it needs to keep away those who would look to acquire Ubisoft.
All through the calls for his resignation from employees, current and former, players, and rumours around acquisitions, Yves Guillemot has been consistent in that he means to stay exactly where he is.
Which is what makes the terms of the deal seem especially favourable for Guillemot Brothers Limited and Ubisoft. Though Tencent’s stake in both companies sees an increase, it remains out of the decision making, and ultimately out of control.
Whether or not that changes in eight years, when Tencent can re-negotiate for a higher stake, remains to be seen.
Source – [Ubisoft Press Release]