EA & Ubisoft Begin Preliminary Talks News
Chris Leyton
16/02/2005
The hostility appears to be over as US financial reports suggest that talks have begun…
Electronic Arts surprise share acquisition in Ubisoft has been a permanent fixture of the headlines in recent months, as today it has emerged that the stand-off between the two is beginning to disperse.
Details from the Wall Street Journal suggest the two publishers are currently engaged in talks, despite the French publisher previously classifying EAâs move as âhostileâ.
Although the talks are only at a preliminary stage, the WSJ suggests that they could lay down the foundations to an eventual agreement; although it does note that Ubisoft are actively seeking other ways to fend off the bid.
The WSJ suggests that the talks are currently centred around the price that EA would be willing to pay, and the future restructuring of Ubisoft if a deal were to go through.
Since EA announced its decision to acquire a 19.9% stake in the French family-run publisher, shares have risen 95% to 32.93 euros. Whilst EA has yet to commit to further acquisitions, it has never ruled it out entirely and confirmed last month that it could look to add to its stake and gain representation on the board.
Ubisoftâs current market value stands around 559 million euros ($728 million/£386 million), but given the output of Ubisoft, efficient management and the popularity of the Tom Clancy brand, this could become a sound investment for a company with $2.5 billion (1.9 billion euros/£1.3 billion) in the bank.
Weâll have more information soon.