Vivendi Universal denies Ubisoft takeover rumours

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Publisher Vivendi Universal Games has flatly denied rumours that it is in negotiations with Ubisoft regarding a possible merger or takeover, quashing speculation which stemmed from a French newspaper report.

In a terse statement issued yesterday, VU Games said simply that "in view of the rumours reported in the press, Vivendi Universal denies that any negotiations are taking place concerning the takeover of Ubisoft."

The company was responding to a report in French newspaper L'Agefi, which said that VU Games was considering a buyout of the rival publisher and cited sources close to the rumoured deal saying that talks had already taken place between the firms.

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News source: gamesindustry.biz

Cont...

However, VU's statement seems to comprehensively scotch the rumours - which seemed unlikely in the first place, given that the Vivendi Universal group is still climbing its way out of crippling debts, and that the firm's own videogames division has been underperforming badly for a couple of years.

The report came in the wake of Electronic Arts' surprise purchase of almost 20 per cent of Ubisoft's stock late last month, in a move which has been categorised by the French publisher's board of directors as "hostile".

Infogrames CEO Bruno Bonnell this week said that his company could be prepared to help Ubisoft fight off any hostile takeover attempt by EA, while reports indicate that the French government is also watching the situation closely.

#1 GShapiro on 06 Jan 2005 - 13:25

Plausible deniability

#2 Fat Tony on 06 Jan 2005 - 14:16

No I don't beleive it...

#3 IPv6 on 06 Jan 2005 - 17:36

VU suck! Their lastes Tribes Vengeance game blew the big one. Technology moves forward but this release moved backward.

#4 Jugalator on 06 Jan 2005 - 22:15

Ugh... So many takeover reports these days...
Some may only be rumors, but it still is a future I'm not looking forward to.

Large bulky game companies tend to not be very efficient and only dare going for games/genres they "know" works, not trying out anything new...

#5 Black Raven on 07 Jan 2005 - 01:48

I hope Ubisoft will be able to handle EA's agressive buying spree. I dont want them to fall to EA's corruption.

(1 reply) #6 yayo on 07 Jan 2005 - 04:16

As long as the Splinter Cell series isn't touched, I don't care what happens

#6.1 Sn4k36 on 07 Jan 2005 - 05:19

splinter cell is made in canada. under a different name which is based in montreal.. so they won't get rid of it.

(2 replies) #7 AJCrowley Esq on 07 Jan 2005 - 14:09

Aren't VU and Ubisoft just publishers? They don't actually write the games, they just print the discs and boxes, and sell them to the stores and give the developers a truly pitiful cut of the profits (really), the actual product is dependant on the developers, so VU aquiring Ubisoft shouldn't make the tiniest bit of difference to the end result of any games, though they may choose to publish or not to publish different titles, a franchaise as succsssful as Splinter Cell isn't likely to be dropped in a hurry.

#7.1 DenS on 07 Jan 2005 - 21:28

AFAIK Ubisoft is publisher and also developer.

#7.2 nw_raptor on 07 Jan 2005 - 22:20

Ubisoft is also a developer

I know a guy who works there!!

(1 reply) #8 GShapiro on 07 Jan 2005 - 16:10

Didn't VU cause Valve all kinds of problems during the development and subsequent release of HL2? So I guess it might matter who the publisher is regardless of who actually develops the game.

#8.1 zachman123 on 10 Jan 2005 - 20:11

Yes, and may they go to hell for it. VU and Valve are now bitter enemies from what I've heard, but I think (not sure) that they're still in a contract. Or they were. Or something...

(2 replies) #9 sloppycode on 10 Jan 2005 - 15:54

fake rumour circulated by EA? (who have now bought Ubisoft)

#9.1 radink on 10 Jan 2005 - 21:15

Bought UBIsoft stock, not the company.

#9.2 tehas2230 on 12 Jan 2005 - 04:09

Buying a companies stock is esentially buying a part of the company. If a company is trading 1 million shares of stock, and I own 1000 of them, I own .1% of that company (the equivalent of 1000 shares of stock). What EA did was buy 20% of UbiSoft stock, thus purchasing 20% of the company. If EA wanted to take over the company, all they would have to do is buy 50.1% of all of UbiSoft's stock.

The last big "hostile" takeover that you may have heard of is Oracle trying to buy PeopleSoft. One that may be closer to home (and more recent), Blockbuster attempting to takeover Hollywood Video.

Back to EA and UbiSoft... UbiSoft has total assests of ~$870 million (as of March, 2004). EA has cash (money they can spend whenever they want, on whatever they want) of a little more than $1.35 billion. Yes, that means it's theoretically possible for EA to buy %100 UbiSoft, if they wanted. What EA is doing may make you angry, but it's a business decsion.

I think EA makes great games, and haven't played anything UbiSoft to compare to. EA is doing a smart thing by eliminating the competitor. If you can't drive him out of business, buy it!

That's my 2 cents. Sorry for the long post.

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