Ubisoft asks Canada to help with hostile take over by Vivendi | Broken Joysticks

Feb
29

Ubisoft asks Canada to help with hostile take over by Vivendi

Over the weekend news surfaced that Vivendi, seemed to be attempting a take over by stock purchase (hostile take over) of Publisher Ubisoft. Now in response Ubisoft is seeking financial backing from the governments of Canada and Quebec, as well as increased investment from Canadian shareholders, as it moves to prevent that take over. While such take overs are common place for Vivendi, Ubisoft hops to be able to prevent themselves from becoming another acquisition in their portfolio.

Vivendi is already a 15% stake holder in Ubisoft, and they have quite the history of takeovers. Recently they have added Gameloft to their portfolio, and after I suppose that makes sense since Ubisoft co-founder Michel Guillemot also founded Gameloft. Ubisoft CEO Yves Guillemot wants to “increase the number of Canadian shareholders in Ubisoft to have better control over the capital.”

So what does that mean? that little quote there, from the CEO is more than just a common please for help. Its a plea to the people of Canada (where must of Ubisoft is based) to help the studio that currently calls it home. Currently, Ubisoft has two major studios in Canada, one in Montreal and  one in Toronto, and smaller operations in Quebec City and Halifax. These offices  which collectively employ more than 3000 people might be at risk if the company was taken over. It’s unlikely that VIvendi would shut them down outright, but Guillemot said Ubisoft’s independence gives it “decision-making and operational agility, as well as the ability to make deals with any companies it wants.”  If Vivendi took over operations Ubisoft might lose those abilities.

Now dont get your pitchforks just yet, Ubisoft is already a publicly held company, it already has to deal with lots of restrictions that make it less agile than say a start up indie studio. It is also worth looking at the way the Vivendi does  business. They held for some time a 61% stake in Activision Blizzard, but recently divested them selves of that stake.  In case you dont follow the markets Activision Blizzard, Inc. (ATVI) is currently trading down, and has been for most of the the Vivendi tenure. Yet they still exist and havent been shedding jobs left and right. So perhaps this isint doom and gloom for Ubisoft? Either way, even if they were acquired with Vivendi’s track record its unlikely that most stock traders would bite, since they dont have a great record for Activision Blizzard.

The coming weeks will show us who ends up winning. Keep your eyes on that ticker, if it goes up and hte  buy volume goes up, it could be happening. Oh and dont forget to show your support for all game developers by buying their games, so the industry can avoid outside influence as much as possible.

Leave a comment

About Fionna Schweit

Hi, Im fionna Fox! and i love video games. I have been playing video games since I could reach the keyboard. My first PC was a gateway (though dont ask me to recall the model number) and I remember starting most of my games out of DOS. Those were interesting years. My first console system was an Nintendo 64, on which i played a lot of GoldenEye and StarFox 64 and even more gauntlet dark legacy. Now i mostly play PC games, though i do own a Xbox one (mostly for halo). My favorite types of games are rogue likes, and anything thats an RTS, I have a soft spot for anything in the Warhammer universe as well.

Leave a comment

You must be logged in to post a comment.

Follow Us On Social Media

Archives