Tencent will increase stake in sport firm Ubisoft

Chinese tech giant Tencent has announced a minority stake increase in Ubisoft in a deal that values ​​France’s biggest video game maker at more than 10 billion euros.

Ubisoft said in a statement that Tencent will buy a 49.9% stake with 5% voting rights in Guillemot Brothers Limited, the holding company of the Guillemot family – Ubisoft founders in 1986. As part of the deal, the Chinese company has the right to increase its direct stake in Ubisoft to 9.99% from 4.5% today.

Tencent’s investment in Guillemot Brothers Limited amounts to €300 million, with an implied valuation of €80 per Ubisoft share, or €10 billion for the entire company.

Guillemot Brothers Limited holds the bulk of the Guillemot family’s 15% stake in Ubisoft.

“Tencent is a key shareholder for many of the industry’s leaders, who have created some of the most outstanding video games,” said Ubisoft Chief Executive Yves Guillemot.

“This transaction reinforces our ability to create strong value in the coming years,” he added.

Source: Reuters