Ubisoft CEO says still open to other partners after Tencent deal

Yves Guillemot, CEO of Ubisoft, speaks on stage throughout the Ubisoft E3 convention on the Orpheum theatre in Los Angeles, California June 15, 2015. REUTERS/Mario Anzuoni

PARIS, Sept 10 (Reuters) – Ubisoft (UBIP.PA), France’s greatest video video games maker, continues to be open to different companions after a deal during which China’s Tencent (0700.HK) will increase its stake within the firm, its co-founder and CEO Yves Guillemot mentioned on Thursday.

Guillemot’s feedback, made at a closed press occasion whose content material the corporate requested to not be made public earlier than a showcase occasion on-line on Saturday, got here on the heels of a tough day for Ubisoft’s inventory, which tumbled 17% after the group introduced Tencent would change into its single greatest shareholder with an total stake of 11%. learn extra

The deal values the “Murderer’s Creed” maker at about $10 billion.

“We stay completely unbiased and we are able to act with any exterior firm if we need to,” mentioned Guillemot, who alongside his 4 brothers based Ubisoft in 1986. “That was a giant negotiation with Tencent,” he added. “We will do no matter we wish.”

Merchants and analysts have mentioned the Tencent deal, which sees the world’s largest video games agency by income enter right into a shareholder pact with the Guillemots, eliminated the speculative attraction of Ubisoft shares.

The group has lengthy been seen as a takeover goal because the Guillemots maintain a minority stake within the group. Nonetheless, the Guillemot brothers managed to fend off a raid by French tycoon Vincent Bollore through his media group Vivendi (VIV.PA).

Smaller cell online game maker Gameloft, previously led by Yves Guillemot’s brother Michel, was wolfed up by Vivendi six years in the past.

The secretive siblings, sons of agricultural merchants from a small city in Brittany, western France, have vowed to guard their independence, a purpose which Yves Guillemot, 62, reasserted on Thursday. “Our first intention is to personal our future,” he mentioned.

MEANINGFUL PROGRESS

That prospect was examined lately by a mix of weak monetary outcomes and allegations of sexual harassment, that led to a revamp of the corporate’s governance and pledges to vary a company tradition described as sexist by some former workers.

“Sure, we stumbled, and we acknowledge that”, Guillemot mentioned. “We realized lots alongside the way in which and have made significant progress with concrete motion plans collectively led by our leaders.”

Ubisoft burnt by means of about 200 million euros in money operationally throughout its 2020/2021 monetary 12 months, having generated 169 million of operational money movement the 12 months earlier than.

The corporate’s monetary woes got here on prime of a number of delays within the launch of recent video video games and heightened stress on administration, within the midst of a increase and M&A wave within the online game business.

These have been notably marked by Microsoft’s plan to amass “Name of Obligation” maker Activision Blizzard for $69 billion.

As a part of its plan to return to progress, Ubisoft is aiming to deploy its three “pillar” video games – “Murderer’s Creed”, “Far Cry” and “Tom Clancy’s Rainbow Six” – on all digital platforms, Guillemot mentioned.

The group goals for these three manufacturers to succeed in a complete of three billion euros in annual income inside 5 years, Guillemot mentioned.

Guillemot mentioned “Murderer’s Creed” will launch its subsequent version “Mirage” in 2023. Ubisoft can be partnering with streaming platform Netflix (NFLX.O) to develop three authentic cell video games, together with one primarily based on Murderer’s Creed.

Reporting by Mathieu Rosemain; Modifying by David Holmes

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