Who Tried to Take Over Ubisoft?
Ubisoft, a French multinational video game developer, had a significant takeover attempt in the mid-2010s. Vivendi, a French multimedia conglomerate, made a bid for ownership of Ubisoft in 2015. Let’s dive into the details of this remarkable takeover attempt.
Background
At the time, Vivendi was still reeling from the financial crises of the late 2000s, with a significant debt burden. In pursuit of growth and profitability, Vivendi began to divest its gaming assets, including Activision Blizzard, Gameloft, and Gamerepublic. Meanwhile, Ubisoft continued to grow its market share and revenue steadily.
The Bid
On December 15, 2015, Vivendi announced plans to acquire Ubisoft’s remaining shares, which effectively would have given them a majority stake (around 67%) of Ubisoft’s shares. This move made headlines, as Vivendi tried to take control of the company. Guillemot family, the French billionaire family who founded Ubisoft and retains a significant stake in the company, opposed this move.
The Reasons Why
Vivendi’s bid cited several reasons for its takeover attempt:
• Growth Expectations: Vivendi believed Ubisofit’s growth plans were overly ambitious and that external guidance was necessary to achieve results.
• Operational Simplification: Vivendi aimed to introduce cost-cutting measures, streamline administrative processes, and eliminate redundancies by integrating Ubisoft into its existing games division.
• Synergistic Financial Benefits: Vivendi expected merging Ubisoft with its own gaming assets to gain economies of scale, reduce costs, and increase profitability.
The Resistance
The Guillemot family stood firm against Vivendi’s offers, citing concerns about:
• Creative Freedom: They feared giving up control over the creative aspects of Ubisoft’s games and the potential cultural impact on the company.
• Emotional Attachment: The Guillemot family had an emotional attachment to their company, which they founded and still owned a significant stake in.
• Shareholder Value: They believed Vivendi’s offer undervalued Ubisoft stock and would ultimately benefit Vivendi more than Ubisoft shareholders.
Court Battles and Negotiations
The takeover attempted led to a series of court battles and intensive negotiations between Vivendi and the Guillemot family. In a surprising turn of events, Guillermo Forch, representing the Guillemot family, accused Vivendi of orchestrating a hostile takeover and attempting to unfairly influence Ubisoft’s shareholders.
This led to a standoff, culminating in a series of court-sanctioned meetings and votes. To everyone’s surprise, Vivendi’s takeover bid of 50 euros per Ubisoft share was rejected in May 2028. The Guillemot family regained control of the company, and Vivendi’s stake in Ubisoft was reduced significantly.
Lessons Learned
A few key takeaways can be gleaned from this remarkable takeover bid:
• Shareholder Relations: The Guillemot family valued their relationships with Ubisoft’s shareowners and were determined to protect those interests.
• Creative Control: The ownership structure and management of Ubisoft safeguarded the creative vision and autonomy for the company.
• Financial Risk: Vivendi’s takeover attempt illustrates the risks associated with acquiring a substantial stake in a publicly traded gaming company.
Current State and Recap
In conclusion, Vivendi’s takeover attempt in 2015 underscored the importance of shareholder relations and ownership structure in the gaming industry. The bold move ultimately failed, reiterating the significance of creative autonomy and financial risk. Today, the Guillemot family remains responsible for Ubisoft’s strategic direction, enabling the company to continue creating innovative content and maintaining its market position.
Timeline Timeline:
| Year | Event Description |
|---|---|
| 2008 | Vivendi acquires Activision Blizzard, Gamasoft, and Gamerepublic under financial duress |
| 2015 | Vivendi announces €50 per share bid for Ubisoft majority stake |
| 2016 | Giullemot family rejects Vivendi’s offer, citing creative freedom |
| 2018 | Vivendi shares in Ubisoft are reduced significantly. Guillemot family regains control |
| 2023 | Guildford, representing the Guillemot family, criticizes Vivendi’s takeover attempt as hostile. |
Conclusion
In conclusion, when Vivendi attempted to take control of Ubisoft in 2015, many factors came into play. The decision ultimately rested on the importance of creative direction, shareholder relations, and financial risk factors.