Ubisoft CEO Speaks out Against EA Move 365
Gamespot is reporting that Ubisoft CEO Yves Guillemot has spoken out against EA's "hostile action". From the article: "Considering the industry practice of communicating informally about such decisions, we were disappointed, to say the very least, that EA chose not to inform us of their specific plans beforehand." Further, Voodoo Extreme is reporting that a financial report may suggest the French government is going to assist Ubisoft in staying out from under EA's thumb.
From the second article... (Score:5, Informative)
Due to very irritating interstitial advertisements, here is the text of the second article:
French Government To Protect Ubisoft From EA?
December 30, 2004 - An AFX Financial report suggests that the French government may take steps to protect Ubisoft from acquisition by EA, should they decide to expand their 19.9% ownership:
The heads of the studios fear that a purchase of Ubisoft by EA would lead to the disappearance of the last decision making centre in France for the video games industry, La Tribune added.
Ubisoft said last night it is not in talks 'at present' with EA about the US company's recent purchase of a stake. 'In light of recent news spread by the press, Ubisofts board of directors reiterates that, in the absence of information from Electronic Arts regarding its intentions, the latter's acquisition of 19.9 pct of the groups capital is unsolicited and currently considered as hostile,' the company said.
Les Echos newspaper reported yesterday that Ubisoft will gather together some of its largest shareholders next week in a bid to convince them not to throw their weight behind EA.
-- Andrew Burnes
Re:WTO? (Score:3, Informative)
Not if they play by the same rules as everyone else. They're looking to expand their ownership of the firm -- presumably so they have more control of the board and can reject the offer.
Re:Article submitters and Slashdot editors, please (Score:3, Informative)
There's a bunch of nuances involved with the whole thing, but thats the "for dummies" version.
Naturally this is concerning to the precarious French government as they would lose their primary stake in the game industry to a US company.
First on the ball!!! (Score:3, Informative)
With Electronic Arts the new owner of almost 20 percent of Ubisoft, you might expect that company's leader to wobble a bit in the unexpected limelight. Yves Guillemot does anything but.
Just five days before Christmas, with many game industry staffers already on vacation, Electronic Arts dropped an explosive bit of news on the wires. In a short press release, it acknowledged having purchased an estimated $85-$100 million worth of Ubisoft shares.
The move--a surprise to the vast majority of industry observers--gave it a 19.9 percent ownership position in one of its most daunting competitors. Wedbush Morgan senior analyst Michael Pachter told GameSpot, "I think EA is interested in Ubisoft's development talent and in its Gameloft investment [in wireless games]."
But is that all? "I don't know if EA wants to take them out," Pachter said, "but given that Ubi has a pretty strong set of licenses and great development--with a more Euro-centric sales profile--it's a combination that makes sense from EA's perspective."
Pachter clearly assesed the stock acquisition as something less benign than how EA had earlier portrayed it. "EA is not in the business of making passive investments in public companies," Pachter concluded.
Regardless of its motives, the builders of famous franchises that include Madden and Medal of Honor now own a block of Ubisoft shares second in size only to the chunk owned by the company's founders, one of whom is its CEO and president, Yves Guillemot.
We spoke to Guillemot shortly after the transaction was announced.
GameSpot: Yves, to most observers, EA and Ubisoft are arch rivals who compete for market share, mind share, shelf space, and talent. It's hard to believe the two parties can work toward common goals. Assuming all regulatory issues are cleared, your board of directors will have to acknowledge EA's wishes as they might other shareholder's. How do you expect this marriage to get on?
Yves Guillemot: Although EA and Ubisoft are both leading game publishers, I wouldn't say we are arch rivals. All players in the industry compete for market share, shelf space, and talent, but as the past few months have shown, the market is growing, and the more outstanding titles that hit the shelves, the more the market grows. So getting great games out there is a common goal that all publishers share.
GS: So how do you read the move by Electronic Arts?
YG: I have stated on the record that I view this action on the part of EA as hostile.
GS: Do you see malevolence at its core?
YG: Until we have further information we cannot say what EA's goals might be.
GS: How does having EA as a shareholder affect the issue of disclosure, specifically company strategy?
YG: In terms of the company's confidential strategy, that information is not provided to any of our shareholders. This has always been our policy, and we have consistently shown ourselves worthy of the confidence of our shareholders.
GS: Are there remaining shares of the company that are vulnerable to acquisition by Electronic Arts, and if so, is Ubisoft management considering options if EA were to become a majority shareholder?
YG: Ubisoft is a publicly traded company, with 22.8 percent of its voting rights held by the company's founders. Of the remaining capital publicly held, 13 percent of voting rights are in the hands of financial institutions and 44.5 percent are in the hands of small shareholders. The management is studying all its options under several different scenarios.
GS: Given this twist in the company's timeline, what does the future hold for Ubisoft?
YG: For the immediate future, we are still looking forward to a record-breaking fourth quarter, with the release of several titles which you [in the press] also seem to be eagerly anticipating.
GS: What about the long-term outlook?
YG: When looking at the longer-term, our only concern is the
Re:From the second article... (Score:3, Informative)
Re:Yes - the US is already upset over planes... (Score:3, Informative)
Re:WTO? (Score:2, Informative)
As to whether or not that counts as "major"...
Re:WTO? (Score:4, Informative)
The Byrd Amendment.
Re:Who would want to buy ANYTHING french ? (Score:3, Informative)
Yeah, you better send that green statue in NY harbor back to France, before it topples over.
Re:Irrelevant? (Score:3, Informative)
And yet, Napoleon's goal (independent of his method) was to overthrow tyranny and spread the spirit of the French Revolution throughout Europe. Interesting to look at this in a modern context, eh?