Tencent is once again making a major splash in the gaming space. This comes after a report from Reuters indicated the Chinese technology giant would be acquiring a 49.9% stake in Guillemot Brothers Limited, the holding company of Ubisoft. On top of that, Tencent will receive a 5% voting stake in Ubisoft.
According to Dot Esports, the investment in Guillemot Brothers Limited adds up to a little bit under $301.6 million. As Kotaku’s Ethan Gach puts it, Tencent is “significantly overpaying” the Guillemot family based on the current value of Ubisoft’s stock.
Prior to this announcement, Tencent had already owned 4.5% of Ubisoft itself. Now, thanks to this new deal, Tencent’s stake in Ubisoft will reportedly go up to as much as 9.99%.
Based on a statement from Ubisoft, Tencent cannot sell its Ubisoft shares for at least five years. Moreover, Tencent cannot increase its stake in Ubisoft further than 9.99% for at least eight years. Even if Tencent does decide to sell, the Guillemot family will be given priority in purchasing the shares they choose to sell.
(All information was provided by Dot Esports)
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