Virtual Legality
Virtual Legality is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).
Tencent Is Getting (More) Into the Ubisoft Business | (VL710)
In this episode, Richard Hoeg explores the history of Tencent's relationship with Ubisoft, delves into the details of their recent investment, and offers his conclusion on its implications for the digital and gaming industry.
Key Points
- Ubisoft announced that Chinese gaming giant Tencent has acquired a 49.9% economic stake with 5% voting rights in Guillemot Brothers Limited, the family holding company with a significant share in Ubisoft, solidifying Tencent as a key financial but not operational player in the company.
- Tencent's investment includes a €300 million stake acquisition and a €100 million capital increase in Guillemot Brothers Limited at an implied valuation of Ubisoft of €80 per share, along with providing a long-term unsecured loan to refinance the family's debt.
- The agreement between Tencent and the Guillemot family includes contractual restrictions preventing Tencent from selling its shares for five years, from increasing its direct stake in Ubisoft beyond 9.99% for eight years, and from having governance or operational veto rights within Ubisoft.
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Transcript
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