Video game maker Electronic Arts divests stake in rival Ubisoft
16 Jul 2010
Electronic Arts (EA), the world's second-largest video games maker, sold its controversial stake in French rival Ubisoft, ending a 6-year animosity between two giants in the video gaming industry.
Redwood City-based EA, the largest shareholder in Europe's largest video-game producer Ubisoft, sold its entire 14.8 per cent stake for about €94 million ($122 million).
Swiss bank, UBS, which was hired to divest the stake, placed 14 million Ubisoft shares at a price range of €6.48, valuing Electronic Arts stake at approximately €91 million.
Paris, France-based Ubisoft, founded in 1986 by the five Guillemot brothers, is the largest video games maker in Europe, and the fourth largest in the US.
With 2009 sales of €1,058 billion, Ubisoft has made money-spinning video games like Prince of Persia, Rayman, Assassin's Creed, Beyond Good & Evil and H.A.W.X among others.
EA had taken a 19.9 per cent stake in Ubisoft in 2004 with the aim of potentially buying the company some time in the future and Ubisoft had fiercely defended itself on remaining independent.
Ubisoft termed EA's move as "hostile" and the Guillemot family, which holds 11.26 per cent stake in Ubisoft and 20 per cent of the voting rights had then decided to ward off a hostile takeover.
EA said today that because of a change in strategy it decided to sell its stake in Ubisoft. "Our strategic priorities have changed since our initial investment," an EA spokesperson said in a statement.
