An interesting piece of rumor has been floating around the internet today. Ubisoft Entertainment SA (OTCMKTS:UBFSY) is in the spotlight today and it looks like that the company is working hard to prevent what could be a takeover of the whole company.
According to a report published by a renowned Canadian newspaper, the CEO of Ubisoft, Yves Guillemot, recently had a talk with the premier of Quebec on the matter of investments. Yes, Guillemot is looking towards the Quebec government to “discuss Investment opportunities”. Not only that, the report also mentions that many of the company’s top level management is meeting up with “a dozen potential investors” across the Canadian land in order to draw investment for the gaming publisher/developer.
The reason behind the investment? Recent rumors have stated that the French publishing giant is looking for ways to grow and attract investors to fight off a potential takeover by the French multinational mass media company, Vivendi, which is renowned in the industry for its takeover bids and other related acquisitions. The company recently made a takeover bid for the popular game publisher, Gameloft, after it was successful in acquiring a whopping 30% stake in the company.
Vivendi has been eyeing Ubisoft for quite a while. The Ubisoft management supposedly knew about these takeover plans, stating a while ago that pursuing Gameloft-like plans for Ubisoft are “unsolicited.” Additionally, there have been leaks where Guillemot has said in emails that they do not want to “be managed by people who do not understand their expertise and what it takes to be successful in the (gaming) industry”.
Attracting Canadian investors seems to make the most sense for Ubisoft right now since most of the company’s staff is Canadian and the most affected from this takeover would be the Canadians as well. As of right now, Vivendi owns about 15% stake in Ubisoft and the hostile bid from the company for Gameloft has raised a major red light at Ubisoft since Vivendi lacks the required experience in the gaming industry. While they would not immediately can Ubisoft’s studios, it is very likely that the company will not be the same after Vivendi takes over since Ubisoft would then be restricted to working with partners from the Vivendi networks.
What are your thoughts on the matter? Do you think Ubisoft could be better if Vivendi takes over? Let us know in the comments below.