France: Vivendi backs away from Ubisoft takeover

French media company Vivendi is selling its stake in Ubisoft for €2 billion (US$2.45 billion) to investors including Chinese tech titan Tencent, ending a potential takeover battle for the French video games maker.

Vivendi, which had been raising its holding in Ubisoft since 2015, has agreed to sell its 27.3% stake in the company which is best known for its Assassin’s Creed and South Park games.

Tencent Holdings Ltd, which dominates China’s mobile gaming market, is investing almost €370 million (US$455.1 million) for a 5% stake, while the Ontario Teachers’ Pension Plan is spending €250 million (US$307.5 million) for a 3.4% stake.

Ubisoft and Tencent will also form a strategic partnership to boost Ubisoft’s reach into China, the world’s largest video game market with estimated sales of US$32.5 billion last year, according to data from gaming consultancy Newzoo.

Vivendi’s stake-building since 2015 had prompted Ubisoft’s founding Guillemot family to court Canadian investors to fend off any hostile takeover.

Full Content: South China Morning Post

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