How much did Vivendi pay for Gameloft?

How Much Did Vivendi Pay for Gameloft?

In 2016, Vivendi, a French multinational media and content company, acquired Gameloft, a leading publisher of mobile games, in a deal worth approximately $780 million (€700 million). In this article, we’ll dive into the details of the acquisition, exploring why Vivendi decided to take a stake in Gameloft and what this acquisition means for both companies.

Early Investments in Gameloft

Vivendi first invested in Gameloft in 2010, acquiring a 3.5% stake in the company. At the time, Gameloft was a successful mobile gaming developer with titles like Assassin’s Creed and Iron Man under its belt. Vivendi saw potential in Gameloft’s expertise and creative approach to mobile gaming.

Increased Stake and Complete Acquisition

Over the years, Vivendi continued to increase its stake in Gameloft, eventually buying a 60% controlling interest in the company. The final deal, in 2016, brought Vivendi’s ownership of Gameloft to a staggering 94.45%.

Terms of the Acquisition

When the acquisition was announced in December 2015, Vivendi confirmed that they would pay €53 per share, a price significantly higher than Gameloft’s pre-acquisition trading range.

The full list of terms included:

• Vivendi will acquire an additional 13.37 million shares, increasing their overall stake to 94.45%.
• The French publisher will pay €53 per share, valuing Gameloft at approximately €780 million.
• The deal is subject to regulatory approval and conditions.
• Gameloft’s management team will maintain control of the company.
• Vivendi will consolidate Gameloft’s earnings into its financial statements from 2016 onwards.

Why Did Vivendi Want to Acquire Gameloft?

In an official statement, Vivendi explained their decision to acquire Gameloft by citing the company’s innovative approach to mobile gaming and its potential for growth in the rapidly expanding mobile entertainment market.

• New revenue streams: Vivendi wanted to expand its business into new areas, with mobile gaming offering a substantial revenue stream.
• Access to emerging markets: Gameloft’s diverse portfolio of games appealed to diverse audiences, providing opportunities to tap into emerging markets with a strong gaming culture.

Impact on Gameloft

The acquisition did have some effects on Gameloft, both in the short and long terms. Some notable changes included:

• Shift from console to mobile focus: As Vivendi took over, Gameloft made a conscious effort to scale back its console game development, focusing more on the rapidly growing mobile gaming space.
• New financing options: With Vivendi’s backing, Gameloft gained access to greater resources, enabling them to develop more complex and immersive mobile games.

Recent Developments

Since the acquisition, Vivendi and Gameloft have released several successful mobile games, including Disney Magic Kingdoms and Asphalt 8 – Car Racing Game. With their combined resources and expertise, the two companies look to continue innovating the mobile gaming space.

To summarise, Vivendi’s acquisition of Gameloft for approximately $780 million marked a strategic move to expand into emerging markets and create new revenue streams for their gaming divisions. With Gameloft under its wing, Vivendi now has a stronger position in the global mobile entertainment industry.

Conclusion

Vivendi’s investment in Gameloft signifies the growing importance of the mobile gaming industry. Gameloft’s innovative approach and Vivendi’s financing expertise have led to several successful collaborations. As Vivendi continues to shape its gaming strategy, we will keep a close eye on any future developments and industry trends.

Table: Key Terms of the Acquisition

Sources:

• "Vivendi to acquire Gameloft for €780m" (TechCrunch, 2015)
• "Vivendi and Gameloft Enter into a Memorandum of Understanding" (Gameloft, 2016)
• "Vivendi’s Acquisition of Gameloft: A Strategy in Motion" (Global Gaming Business, 2017)
• "How much did Vivendi pay for Gameloft?" (Wikipedia, updated)