Tencent buys 49.9% of Ubisoft parent company shares

Ubisoft has announced that Tencent has purchased additional shares of Guillemot Brothers Limited (GBL), the developer’s parent company.

The Chinese company invests another 300 million euros (80 euros per share) in the company and thus owns 49.9% of the shares. Before this deal, Tencent owned 13% of the shares. In addition, Tencent is giving GBL an unsecured loan that would allow it to purchase a larger portion of Ubisoft.

As a result of the deal, Tencent and Guillemot Brothers Unlimited now own 29.9% of Ubisoft. The Guillemot family 24.9% of the voting shares.

Tencent will receive only 5% of the voting shares in GBL, will not have a seat on the board of directors and no right to block decisions. Ubisoft’s board of directors has authorized Tencent to increase its stake in Ubisoft from 4.5% to 9.99%. Tencent may not go above that 9.99% for the next eight years. Tencent will also not be allowed to sell the shares within the next five years. All details can be read here.

In August it became clear that Tencent wants to become the largest shareholder of Ubisoft. Tencent is a major player in the game industry. It owns shares in publishers and developers such as Riot Games, Epic Games, Frontier Developments, Activision Blizzard and PlatinumGames.

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