Vivendi Raises Stake in Videogame Maker -- WSJ

By Nick Kostov 

Vivendi SA increased the pressure on videogame company Ubisoft Entertainment SA, adding to its stake and saying that it intends to continue buying more, according to a regulatory filing on Friday.

Vivendi, the French media company led by billionaire Vincent Bolloré, acquired stock giving it 20.1% ownership in Ubisoft, up from 17.7% previously. It added that it doesn't plan to make a bid or take control of the company for the next six months.

"Vivendi continues to hope for the establishment of a fruitful collaboration with Ubisoft," the company said in the statement.

Ubisoft, which is known for franchises such as "Assassin's Creed," has been hostile to Vivendi's stake-building for months, saying that Vivendi doesn't know the videogame business and would destroy shareholder value.

On Friday, Vivendi repeated in the filing that it was considering asking for board representation at Ubisoft to reflect its shareholder position. A spokesman for Ubisoft said the company's management remained determined to keep its independence.

Mr. Bolloré's latest move is part of a battle with the Guillemot brothers who founded and run two French videogame companies: Ubisoft and Gameloft SE. Vivendi last month prevailed in its efforts to gain control of Gameloft, a company that has had success making games for mobile such as "Despicable Me: Minion Rush" and "Dragon Mania Legends". Investors meanwhile have sent shares of Ubisoft up 18% in the past three months, with some betting that it too would eventually be taken over.

Write to Nick Kostov at [e-mail]

(END) Dow Jones Newswires

June 20, 2016 02:48 ET (06:48 GMT)

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