If you weren’t aware, Vivendi gobbled up 6.6% of Ubisoft stock and 6.2% of Gameloft last week. These were unsolicited deals, meaning Vivendi gave neither company a heads up on the stock acquisitions. You may remember Vivendi as the former majority stakeholders of Activision Blizzard until 2013 when Bobby Kotick and partners bought them out. While 6% doesn’t sound like much, in shareholder terms, this is significant.
“Our intention is and has always been to remain independent, a value which, for 30 years, has allowed us to innovate, take risks, create beloved franchises for players around the world, and which has helped the company grow into the leader it is today,” Guillemot said.
“We’re going to fight to preserve our independence. We should not let this situation - nor any future actions by Vivendi or others - distract us from our goals. Our best defence is to stay focused on what we have always done best - deliver the most original and memorable gaming experiences.”
There is a threadwar going on, Ginger - Stay strong!
On-topic - Would it be such a bad thing? I mean, Ubisoft seems stuck in a rut with their games, and if they can’t make AC5…or whatever number it is by now work, I don’t think we are losing out on much as gamers. Especially if Vivendi can demand some shakeups and do-overs to enhance the games.
True, but in this case we could hope that the two are parallel - If AC5 flops, they need to change the formula, which could end up a win for gamers, is what I was trying to convey.
To supplement the communication of October 22, 2015, regarding its equity interest increase in Ubisoft Entertainment and Gameloft, Vivendi (Paris:VIV) indicates that:
Vivendi’s acquisitions were financed through its disposable cash.
Vivendi is not acting together with any third party in connection with its investments in Ubisoft and Gameloft and has not entered into a temporary sale agreement concerning the shares or voting rights of either of the two companies.
Vivendi does not hold instruments and is not a party to agreements such as those referred to in paragraphs 4° and 4° bis of Article L.233-9 of the French Code de commerce (Trade Code). The Group is considering continuing to acquire shares depending on market conditions. These acquisitions were not specifically designed as a preparatory step for a plan to takevover Ubisoft and Gameloft. Nevertheless, over the six coming months, Vivendi cannot rule out the possibility of considering such a plan.
Vivendi might request, in due time, to be represented on the Board of Directors of the two companies.
Vivendi’s investment in the Ubisoft and Gameloft business sector is part of a strategic vision of operational convergence between Vivendi’s content and platforms and the two companies’ productions in the field of video games. Since this strategy does not require any modification to Ubisoft and Gameloft’s legal or financial organization, Vivendi does not consider any of the transactions referred to in Article 223-17, I, 6° of the AMF Règlement Général (General Regulations).
These acquisitions were not specifically designed as a preparatory step for a plan to takevover Ubisoft and Gameloft. Nevertheless, over the six coming months, Vivendi cannot rule out the possibility of considering such a plan.
Vivendi might request, in due time, to be represented on the Board of Directors of the two companies.
“Furthermore, Vivendi cannot, at this time, confirm nor deny that they have, in fact, ‘pwned these froggy bitches with sick cash bombs all over da map’.”
Vivendi is the heir of over 150 years of exploitative corporate malice, so despite dozens of ownership and governance changes since Napoleon III first chartered their predecessor I imagine they want to keep up their end of things.
Vivendi, the largest shareholder in capital of Gameloft, a French company with internationally-recognized know-how in mobile gaming, announces its intention to file with the Autorité des Marchés Financiers (the French securities regulator, the “AMF”) a public tender offer for all the shares of Gameloft at a price of €6 per share, following the crossing today of the 30% threshold in the capital of the company.
The proposed acquisition of Gameloft, which was approved today by the Vivendi Supervisory Board, fits perfectly with the Group’s strategy to develop as a global leader in content and media. Video games constitute content in their own right and now represent a significant part of the entertainment and media market, and mobile gaming is the segment expected to record the fastest growth.
Ubisoft officials, led by founder and chief executive Yves Guillemot, confirmed they’re meeting this week with a dozen potential investors in Montreal and Toronto in an attempt to build support for the company’s founders and current management. Canada is already key for Ubisoft as a major game-development site, with Montreal home to its largest global studio. Now its financial community is being asked to play a role as well.
Although it’s unlikely Vivendi would shut down Ubisoft’s Canadian studios outright, the assets would be better protected if Ubisoft remained independent, Mr. Guillemot told The Globe and Mail on Thursday. Ubisoft enjoys a decision-making and operational agility that it wouldn’t have under Vivendi, and can forge better partnerships with global media players such as Warner Bros. instead of being forced to work with Vivendi’s properties, the CEO said.
“We want to increase the number of Canadian shareholders in Ubisoft to have better control over the capital,” Mr. Guillemot said, adding he’s approaching investors with longer-term investment horizons who have a feel for the company’s history and corporate culture. “We feel it’s a good defence.”
Ubisoft would welcome an investment by the Quebec government, Mr. Guillemot said, adding he met with Premier Philippe Couillard recently in Davos, Switzerland. Backing from Ottawa would also likely be welcome. Ubisoft has also met with investors in London.
Gameloft SE Chairman and Chief Executive Officer Michel Guillemot plans to resign after shareholders backed Vivendi SA’s hostile bid for the video game company he founded, according to a person familiar with the matter who asked not to be named as the information is private.
Having lost the battle for Gameloft, Guillemot and his brothers must now decide how to best defend Ubisoft Entertainment, the larger of their two gamemakers, from Vivendi’s unwanted embrace. The family is working with financial advisers to find a white knight to protect Ubisoft from a similar fate, people familiar with the matter have said. The Guillemots control 15 percent of the votes in Ubisoft, while Vivendi, which says for now it isn’t seeking control, owns about 18 percent of its capital and has demanded board representation.
