Vivendi selling Ubisoft stake for US$2.45b to investors led by China’s Tencent
Tencent, which operates the world’s largest video games business by revenue, adds another top flight publisher to its international gaming empire
European media giant Vivendi is selling its stake in Ubisoft Entertainment for €2 billion (US$2.45 billion) to a group of investors including Chinese technology titan Tencent Holdings, ending a potential takeover battle for the French video games publisher.
Billionaire Vincent Bollore’s Vivendi, which had been raising its holding in Ubisoft, has agreed to sell its 27.3 per cent stake in the company, best known for its Assassin’s Creed and South Park games.
Hong Kong-listed Tencent, which operates the world’s largest games business by revenue, is investing almost €370 million for a five per cent stake, while the Ontario Teachers’ Pension Plan is spending €250 million for a 3.4 per cent stake.
Ubisoft and Tencent will also form a strategic partnership to boost the French company’s reach into China, the world’s largest video games market with estimated sales of US$32.5 billion last year, according to data from gaming consultancy Newzoo.
The move represents a strategic setback for Bollore and Vivendi, which has pledged to make video gaming one of its key pillars along with advertising, music and pay-television. As part of the deal Vivendi has committed to not acquire any further shares in Ubisoft for five years.