Chinese tech firm Tencent is looking to raise its stake in gaming giant Ubisoft, with the aim of being the single largest shareholder of the group, Reuters reported, citing sources.
Tencent, which bought a stake of 5% in Ubisoft in 2018, has approached the Guillemot family, which currently owns about 15% of the gaming company. The Chinese firm has also expressed interest in buying shares from public shareholders, who hold the remaining 80%.
A term sheet was submitted to the Guillemot family, with Tencent offering as high as 100 euros (US$102.25) per share, compared to the US$67.49 per share it paid back in 2018.
A successful stake increase in Ubisoft – famed for its Assassin’s Creed series – would take pressure off Tencent’s domestic gaming arm, which is still reeling from a crackdown on tech firms by Chinese authorities.
The Chinese firm recently shuttered its game-streaming platform, Penguin Esports, after the group posted lower revenue growth consecutively for the past four quarters.
Currency converted from euro to US dollar: US$1 = 0.98 euro
See also: Tencent’s financial health in 5 charts
Editing by Miguel Cordon
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