Ubisoft for sale?
Posted: 2005-05-28 12:22pm
As much as I dislike Ubi, I'd hate for them to be acquired by EA...Reuters wrote:Reuters Summit-Ubisoft Willing to Be Acquired, in Talks-CEO
Fri May 27, 2005 03:01 AM ET
By Dominique Vidalon and Siobhan Kennedy
PARIS (Reuters) - Ubisoft (UBIP.PA: Quote, Profile, Research) , Europe's second-largest video games publisher, is in takeover talks with several parties and does not rule out being acquired by larger U.S. rival Electronic Arts (ERTS.O: Quote, Profile, Research) if offered a high enough price, the company's chairman and chief executive said on Thursday.
"We are speaking with third parties that are interested either to merge (or to invest in the company)," Yves Guillemot told the Reuters Telecoms, Media and Technology Summit here on Thursday.
"If someone comes with a very good offer, that will be very interesting ... I'm going to consider it," Guillemot said, adding that several Chinese companies were among the suitors, although he declined to provide further details.
Ubisoft, known for the hit "Splinter Cell" game series and "Prince of Persia," is at the center of takeover speculation after Electronic Arts, the world's biggest games maker, bought a nearly 20 percent stake in the French company in December 2004.
Ubisoft has dismissed Electronic Arts' approach as hostile and said it was working on organising a defense against a potential bid. Guillemot said he was also talking not only to other suitors, but with several investors as well.
Guillemot said Ubisoft and Electronic Arts held discussions in the past but they were not speaking at the moment.
"That tactical 20 percent does not help. It's a very bad start," Guillemot said.
"It would be wrong to go with the first guy who wants to buy the company," he added.
Electronic Arts is now the company's largest shareholder, ahead of Ubisoft's founders, the Guillemot brothers, who together own 17.5 percent.
But the brothers still control 22.8 percent of the voting rights against 18.4 percent for EA.
Caisse des Depots et Consignations, a state-owned French bank, owns about 6 percent of the capital. BNP Paribas has a 4 percent stake.
Guillemot said Ubisoft would rather stay independent but he would proceed with a sale at the right price.
"We're not going to sell the company for less than we think it's worth. Our turnover is very good. We see our market share improving, so there's no rush to sell," he said.
Guillemot said Ubisoft had held talks with several Chinese companies, although he declined to name them.
Potential Chinese suitors could include the nation's two largest online game operators, Shanda (SNDA.O: Quote, Profile, Research) and NetEase.com Inc. (NTES.O: Quote, Profile, Research) , both of which have hefty amounts of cash on their balance sheets. Shanda in particular has been very acquisitive in the last year.
