Tencent Goes Aggressive On Its Overseas Endeavors As Domestic Crackdown Pinches

  • Tencent Holding Ltd TCEHY looks to raise its stake in French video game group UbiSoft Entertainment Inc UBSFY in its quest to tap the overseas market, Reuters reports.
  • Tencent, which purchased a 5% stake in Ubisoft in 2018, has expressed interest in increasing its stake in the firm.
  • Tencent reportedly aspires to become the single largest shareholder of the French company with an additional stake purchase.
  • Also Read: Tencent's Overseas Ambitions Faces Resistance From India: Report
  • Tencent looks to buy a part of the additional stake in Ubisoft, the maker of the blockbuster "Assassin's Creed" video game franchise, from the Guillemot family, which owns 15% of the firm.
  • Tencent could offer up to €100 ($101.84) per share to acquire the additional stake implying a premium of 127% to the stock's €44 average price over the past three months.
  • Tencent's move reflects its desperation to make a mark overseas as the sweeping domestic regulatory crackdown takes a toll on its fortunes.
  • Tencent failed to win new domestic game licenses since June last year before China froze gaming approvals for nearly nine months. China resumed its permissions in April 2022.
  • Tencent failed to beat the Q1 revenue consensus due to the ongoing crackdown on the sector.
  • Price Action: TCEHY shares traded higher by 1.22% at $39.70 on the last check Thursday.

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