News publication Reuters is reporting this afternoon that Chinese firm Tencent is looking to increase its stake in French developer and publisher, Ubisoft. The company has already bought a 5% stake in Ubisoft back in 2018 and is now looking to own more of the company. The Chinese firm has reached out to the Guillemot family and expressed interest in increasing its stake. The Guillemot family owns around 15% of the firm while an estimated 80% of the French firm’s shares are owned by public shareholders. Reuters sources say that Tencent intends to be the company’s single-largest shareholder. Ubisoft produces big budget video games such as the popular Assassin’s Creed franchise, Far Cry, Splinter Cell, and much more.
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 15% after the Reuters report. Shares in Guillemot Corp SA (GTCN.PA), the holding company in which the Guillemot family owns the majority shareholding, were trading up more than 7%.
“Tencent is very determined to nail down the deal as Ubisoft is such an important strategic asset for Tencent,” one of the people told Reuters.