Tencent plans to increase its stake in French video game group Ubisoft, four people familiar with the matter said today. Tencent, China’s largest social networking and gaming company, acquired a 5% stake in Ubisoft in 2018. At the time, Tencent and Ubisoft entered into a strategic partnership agreement that allows Tencent to operate, publish and promote several of Ubisoft’s most successful PC games and handheld games in the Chinese market.
Tencent has approached Ubisoft’s founding family Guillemot and expressed interest in increasing its stake in Ubisoft, people familiar with the matter said today.
It’s unclear how much Tencent plans to hold in Ubisoft, which is valued at $5.3 billion, but its goal is to become Ubisoft’s largest single shareholder by buying additional shares, two of the people familiar with the matter said.
Tencent plans to buy a portion of Ubisoft’s shares from the Guillemot family, which owns 15 percent of the company, three of the people familiar with the matter said.
Tencent could offer as much as 100 euros ($101.84) per share for the additional Ubisoft shares, two of the people familiar with the matter said. By comparison, Tencent acquired a 5 percent stake in 2018 at a price of 66 euros per share.
Spurred by the news, Ubisoft shares rose more than 10% at one point.
In addition to buying shares from the Guillemot family, Tencent will also seek to acquire shares from Ubisoft’s public shareholders, making it Ubisoft’s largest single shareholder.
