Takeover | KitGuru https://www.kitguru.net KitGuru.net - Tech News | Hardware News | Hardware Reviews | IOS | Mobile | Gaming | Graphics Cards Fri, 05 Aug 2022 08:09:23 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.kitguru.net/wp-content/uploads/2021/06/cropped-KITGURU-Light-Background-SQUARE2-32x32.png Takeover | KitGuru https://www.kitguru.net 32 32 Tencent is planning to increase its stake in Ubisoft, sources claim https://www.kitguru.net/gaming/matthew-wilson/tencent-is-planning-to-increase-its-stake-in-ubisoft-sources-claim/ https://www.kitguru.net/gaming/matthew-wilson/tencent-is-planning-to-increase-its-stake-in-ubisoft-sources-claim/#respond Thu, 04 Aug 2022 11:22:35 +0000 https://www.kitguru.net/?p=570066 A few years back Ubisoft found itself in a very vulnerable position, with investment giant, Vivendi, looking to take over the company. Eventually Ubisoft was able to fight off the hostile takeover with some assistance from Tencent, which acquired a small stake in Ubisoft at the time. Now, Tencent is looking to own a bigger …

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A few years back Ubisoft found itself in a very vulnerable position, with investment giant, Vivendi, looking to take over the company. Eventually Ubisoft was able to fight off the hostile takeover with some assistance from Tencent, which acquired a small stake in Ubisoft at the time. Now, Tencent is looking to own a bigger piece of the pie. 

Tencent has been expanding its global investments in gaming companies for years, investing in studios and publishers both big and small. Tencent currently has a 5% stake in Ubisoft, and according to sources speaking with Reuters, Tencent is now looking to own a bigger piece.

Unfortunately, we do not know how much more money Tencent plans to put into Ubisoft, but the company apparently wants to be the largest single shareholder in the company. Apparently, the Guillemot family will be selling a piece of their 15% stake in Ubisoft to Tencent.

Ubisoft and Tencent have not commented on these rumours at this time. However, we can see that shares in Ubisoft have taken a dip, and shares in Guillemot Corp, a holding company that owns the 15% stake in Ubisoft, have gone up.

Discuss on our Facebook page, HERE.

KitGuru Says: There have been rumours that Ubisoft is going to shake things up a bit financially. Earlier this year, Ubisoft's name also appeared in acquisition rumours, although Guillemot reportedly still wanted to maintain control of the company. 

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Twitter is suing Elon Musk for pulling plug on buyout https://www.kitguru.net/channel/generaltech/matthew-wilson/twitter-is-suing-elon-musk-for-pulling-plug-on-buyout/ https://www.kitguru.net/channel/generaltech/matthew-wilson/twitter-is-suing-elon-musk-for-pulling-plug-on-buyout/#respond Thu, 14 Jul 2022 10:31:18 +0000 https://www.kitguru.net/?p=567979 After seemingly joking about it earlier this year, Elon Musk made a bid to acquire Twitter in April 2022, offering $43 billion for control of the company. Shortly after, Musk put the deal ‘on hold' while awaiting accurate information on the number of spam bot accounts on the platform. Now, Musk wants to scrap the …

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After seemingly joking about it earlier this year, Elon Musk made a bid to acquire Twitter in April 2022, offering $43 billion for control of the company. Shortly after, Musk put the deal ‘on hold' while awaiting accurate information on the number of spam bot accounts on the platform. Now, Musk wants to scrap the deal entirely, and Twitter's legal team isn't too pleased about it. 

Elon Musk announced that he would be dropping his bid for Twitter, claiming breach of contract over the spam account situation. Now, Twitter is suing Musk for backing out on the merger agreement, citing “material contract breaches by Musk that have cast a pall over Twitter and its business”.

The lawsuit alleges that Musk's public statements about Twitter following the merger agreement have damaged the company. Twitter also calls out Musk's mass-information requests as a way to tank the deal before closing.

Musk has responded to Twitter's lawsuit in the form of a meme, doubling down on the idea that Twitter refused to disclose accurate data on bot accounts on the platform.

KitGuru Says: I'm not a contract lawyer but it seems that backing out of the Twitter deal is not going to be easy. Still, disputes like this can take quite some time to solve, so we'll have to keep an eye out for further updates in the months to come. 

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The Guillemot family reportedly wants to maintain control of Ubisoft https://www.kitguru.net/gaming/matthew-wilson/the-guillemot-family-reportedly-wants-to-maintain-control-of-ubisoft/ https://www.kitguru.net/gaming/matthew-wilson/the-guillemot-family-reportedly-wants-to-maintain-control-of-ubisoft/#respond Thu, 05 May 2022 16:47:43 +0000 https://www.kitguru.net/?p=559409  Just one week ago, reports claimed that Ubisoft was in the process of cleaning up its business in an effort to sell to new ownership. As it turns out, things aren't that simple. According to updated information, the Guillemot family wants to maintain control over Ubisoft, and they may partner with private equity firms to …

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 Just one week ago, reports claimed that Ubisoft was in the process of cleaning up its business in an effort to sell to new ownership. As it turns out, things aren't that simple. According to updated information, the Guillemot family wants to maintain control over Ubisoft, and they may partner with private equity firms to keep the company out of the hands of other potential buyers. 

According to a Seeking Alpha report, the Guillemot family, which currently owns a 15.9% stake in Ubisoft and has 22.3% of voting shares, is planning to negotiate a takeover of Ubisoft with a private equity backer, which would see the Guillemot family continuing to lead the company.

Just as reported initially last week, the Guillemot family may team up with private equity firms like Blackstone and KKR to take control of Ubisoft. In this scenario, Yves Guillemot would remain on as CEO.

Whether or not that is a good idea remains to be seen. Guillemot's leadership has come under fire in recent years, as Ubisoft faced allegations of harassment and failure to protect employees from toxic management. Ubisoft has also seen share prices decline significantly since 2018. Recently, Ubisoft faced some more bad news, as reports of significant internal delays means that the company's game output is going to be thin for the next year or so.

KitGuru Says: It seems if Ubisoft does make a significant business move, it won't be resulting in a change of leadership and a new direction for the company. If the Guillemot family remains in control, then we can expect Ubisoft's current trend of poor decisions to continue. 

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Elon Musk is officially buying Twitter, plans to complete deal this year https://www.kitguru.net/channel/generaltech/matthew-wilson/elon-musk-is-officially-buying-twitter-plans-to-complete-deal-this-year/ https://www.kitguru.net/channel/generaltech/matthew-wilson/elon-musk-is-officially-buying-twitter-plans-to-complete-deal-this-year/#respond Tue, 26 Apr 2022 09:50:34 +0000 https://www.kitguru.net/?p=558299 Just as reported yesterday afternoon, Elon Musk is indeed buying Twitter. The company officially accepted the buyout offer last night, with plans to complete the deal before the end of the year.  Thanks to the announcement, we can also clear up confusion on how much the deal is worth. Previously, the deal has been reported …

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Just as reported yesterday afternoon, Elon Musk is indeed buying Twitter. The company officially accepted the buyout offer last night, with plans to complete the deal before the end of the year. 

Thanks to the announcement, we can also clear up confusion on how much the deal is worth. Previously, the deal has been reported as valued at $41 billion, $43 billion and even $45 billion. According to Twitter's press release, the deal is worth around $44 billion at $54.20 per share, a price that Musk said would be his best and final offer.

The announcement also confirms how Musk will be financing the deal, including $25.5 billion in loans, and a $21 billion equity agreement. According to Bret Taylor, Twitter's Independent Board Chair, the board “conducted a thoughtful and comprehensive process to assess Elon's proposal”, and ultimately decided that this is “the best path forward for Twitter's stockholders”.

Speaking on the deal, Musk added that he believes in Twitter's potential, promising to improve it by “enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans”.

Discuss on our Facebook page, HERE.

KitGuru Says: It is now official, Elon Musk will soon own Twitter after years of being one of the site's most prolific users. Will this be a good or bad move for the platform moving forward? 

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Twitter plans to accept Elon Musk’s buyout offer, sources claim https://www.kitguru.net/channel/generaltech/matthew-wilson/twitter-plans-to-accept-elon-musks-buyout-offer-sources-claim/ https://www.kitguru.net/channel/generaltech/matthew-wilson/twitter-plans-to-accept-elon-musks-buyout-offer-sources-claim/#respond Mon, 25 Apr 2022 13:28:29 +0000 https://www.kitguru.net/?p=558233 Elon Musk has always had a huge presence on Twitter, to the point where even if you don’t follow him, you’ve likely seen him pop up in your feed. Now, Musk is making a bid to buy Twitter outright, and despite early reports, it seems the company will accept the offer.//

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Elon Musk has always had a huge presence on Twitter, to the point where even if you don’t follow him, you’ve likely seen him pop up in your feed. Now, Musk is making a bid to buy Twitter outright, and despite early reports, it seems the company will accept the offer.

Initially, Musk acquired a 9.2% stake in Twitter, enough to gain an invitation to the company’s board. However, Musk turned down the offer to join the board, which in turn paves the way for Musk to buy more shares. Shortly afterwards, Musk made his intentions clear, making a $54.20 per share acquisition offer, totalling around $43 billion USD.

Reports indicated that Twitter didn't want to sell initially and leadership looked at options, including a “poison pill” defence to avoid a takeover. However, as reported by Reuters today, it seems that Twitter is now leaning towards accepting the offer and allowing Musk to take the reigns.

The deal may be officially announced within hours, with the board set to recommend the transaction to shareholders. Even after a deal is signed though, Twitter could accept an offer from another party if approached, but it would have to pay a ‘break up' fee to Musk to get out of the deal once accepted. We saw an example of this recently, with Nvidia paying Arm over $1 billion after failing to close the acquisition deal.

Discuss on our Facebook page, HERE.

KitGuru Says: Nothing is official yet, but it is looking like Elon Musk will be adding Twitter to his list of massive companies, joining the likes of Tesla, SpaceX, Neuralink, The Boring Company and others. 

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Tech companies voice support for Nvidia’s proposed Arm takeover https://www.kitguru.net/channel/generaltech/matthew-wilson/tech-companies-voice-support-for-nvidias-proposed-arm-takeover/ https://www.kitguru.net/channel/generaltech/matthew-wilson/tech-companies-voice-support-for-nvidias-proposed-arm-takeover/#respond Mon, 28 Jun 2021 14:34:58 +0000 https://www.kitguru.net/?p=521546 After Nvidia announced plans to acquire ARM in a $40 billion deal, a number of tech companies raised concerns, including the likes of Qualcomm, Google and Microsoft. Now, several companies that license ARM technology are speaking out in support of Nvidia's takeover, providing counter arguments.  As reported by Bloomberg, this week, Broadcom, MediaTek and Marvell …

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After Nvidia announced plans to acquire ARM in a $40 billion deal, a number of tech companies raised concerns, including the likes of Qualcomm, Google and Microsoft. Now, several companies that license ARM technology are speaking out in support of Nvidia's takeover, providing counter arguments. 

As reported by Bloomberg, this week, Broadcom, MediaTek and Marvell Technology Group have become the first ARM customers to publicly support Nvidia's takeover of the company. Each of these companies represent support from a range of industries, with Broadcom being known for wireless technologies, MediaTek being known for smartphone processors and Marvell being a huge presence in datacentre and storage.

Other companies like Qualcomm are concerned that Nvidia acquiring ARM will lead to limited supply or higher prices for customers. As a result, regulators and market authorities are investigating the deal.

Nvidia's acquisition of ARM is currently under investigation by the UK Competition and Markets Authority, and regulators in the US, EU and China to ensure no monopoly is being formed. Nvidia remains confident that the deal will be approved to go ahead in 2022.

Discuss on our Facebook page, HERE.

KitGuru Says: There are still a lot of approvals to be gained before Nvidia can take over ARM. Do you think the deal will ultimately be approved? 

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Sports Direct is taking over GAME in deal worth £52 million https://www.kitguru.net/gaming/matthew-wilson/sports-direct-is-taking-over-game-in-deal-worth-52-million/ https://www.kitguru.net/gaming/matthew-wilson/sports-direct-is-taking-over-game-in-deal-worth-52-million/#respond Mon, 15 Jul 2019 15:00:52 +0000 https://www.kitguru.net/?p=415075 Update (15.07.19): Last month we heard that Sports Direct was looking to save UK retailer GAME with a takeover bid worth roughly £52 million. Now just over a month later, it looks like the takeover is all set to go forward, with Sports Direct set to own 84 percent of GAME shares. Regulatory filings last …

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Update (15.07.19): Last month we heard that Sports Direct was looking to save UK retailer GAME with a takeover bid worth roughly £52 million. Now just over a month later, it looks like the takeover is all set to go forward, with Sports Direct set to own 84 percent of GAME shares.

Regulatory filings last week showed that Sports Direct is acquiring 145,057,695 shares in GAME, bringing its total stake over 80 percent and making it the majority stake holder. Sports Direct is owned by Mike Ashley, who has made several high street retail takeovers in recent years. GAME already has a relationship with Sports Direct, as GAME stands can be found in several stores, with Sports Direct set to take over the gaming retailer, we can likely expect this partnership to expand considerably.

Due to the takeover, GAME will be removed from the London Stock Exchange in August, giving minority shareholders a chance to sell their shares now prior to being de-listed. Moving forward, Sports Direct will be evaluating GAME's business and make changes to boost profitability, which will likely involve some stores closing and jobs being cut.

Original story (06.06.19): It is no secret that UK retailer, GAME, has been in trouble over the last five years. The gaming store has struggled financially as physical game sales continue to decline and more people turn to shopping online instead of the high street. GAME’s most recent money-making attempt saw the company set up video game stands in Sports Direct stores across the country and now, it looks like Sports Direct may take over GAME entirely.

Sports Direct has made an offer to buy GAME for £0.30 per share, which would equate to around £52 million in total. The company began showing interest in GAME back in 2017, when it acquired a 25 percent stake in the company. That stake has since been increased to 38.5 percent, which means Sports Direct needs to make a mandatory takeover offer.

GAME has issued a notice to investors to inform them of the bid but so far, a final decision has yet to be made. We should hear more on that front very soon.

If the deal goes through, there will likely be some wide changes taking place at GAME to cut costs and improve profitability in an increasingly digital world.

KitGuru Says: At the very least, a takeover like this would ensure that GAME remains alive in some capacity moving forward. However, this does make me wonder if there will be an increased focus on selling sports games and blockbuster shooters within Sports Direct, rather than having big all-encompassing dedicated GAME stores.

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Vivendi has officially sold off all of its shares in Ubisoft https://www.kitguru.net/gaming/matthew-wilson/vivendi-has-officially-sold-off-all-of-its-shares-in-ubisoft/ https://www.kitguru.net/gaming/matthew-wilson/vivendi-has-officially-sold-off-all-of-its-shares-in-ubisoft/#respond Wed, 06 Mar 2019 12:56:04 +0000 https://www.kitguru.net/?p=405955 Back in late 2015, former Activision owner, Vivendi, began buying shares in Ubisoft, seemingly with plans to take over the company. Ubisoft's CEO spoke out against the takeover and even took steps to fight back against it. Eventually, Vivendi relented and agreed to sell off its shares. Now, Ubisoft is officially free, as Vivendi no …

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Back in late 2015, former Activision owner, Vivendi, began buying shares in Ubisoft, seemingly with plans to take over the company. Ubisoft's CEO spoke out against the takeover and even took steps to fight back against it. Eventually, Vivendi relented and agreed to sell off its shares. Now, Ubisoft is officially free, as Vivendi no longer owns any stake in the publisher.

At one point, Vivendi owned more than a 27 percent stake in Ubisoft. If Vivendi had reached 30 percent, then under French law, the company would have been required to make a buyout offer. After plenty of back and forth with Ubisoft's board and CEO, Vivendi announced in 2018 that it would sell all of its Ubisoft shares and not buy any more for at least five years.

That day has now come, with Vivendi's remaining shares being sold off. As pointed out by Reuters, Vivendi's total sales of Ubisoft shares brought in around €2 billion.

Since Vivendi announced that it would be backing off, Ubisoft sold a portion of shares to Tencent, which also has ownership stakes in Epic Games, amongst other publishers.

KitGuru Says: For a while, it looked like Ubisoft would not be able to escape a potential takeover. For now, it looks like Vivendi will be out of the picture for five years, although Vivendi has said that it is looking to acquire shares in other companies around the games industry. 

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Vivendi plans to sell off all remaining Ubisoft shares by March https://www.kitguru.net/gaming/matthew-wilson/vivendi-plans-to-sell-off-all-remaining-ubisoft-shares-by-march/ https://www.kitguru.net/gaming/matthew-wilson/vivendi-plans-to-sell-off-all-remaining-ubisoft-shares-by-march/#respond Fri, 28 Sep 2018 07:45:03 +0000 https://www.kitguru.net/?p=388581 Back in October of 2015, Vivendi, the same company that once owned a majority stake in Activision, started taking an interest in Ubisoft. Vivendi swiftly began buying up shares, putting Ubisoft's board into a bit of a panic. Ubisoft made it clear that the potential takeover was not welcome and eventually, Vivendi began backing off. …

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Back in October of 2015, Vivendi, the same company that once owned a majority stake in Activision, started taking an interest in Ubisoft. Vivendi swiftly began buying up shares, putting Ubisoft's board into a bit of a panic. Ubisoft made it clear that the potential takeover was not welcome and eventually, Vivendi began backing off. Now, the threat should be truly gone, as Vivendi plans to have sold all of its Ubisoft shares next year.

Over the course of two years, Vivendi raised its stake in Ubisoft to 27.3 percent. If Vivendi had acquired 30 percent of the company, then it would have been required to make a buyout offer under French law- something that Yves Guillemot, Ubisoft CEO, strongly wanted to avoid. In March of this year, Vivendi decided to take the hint and announced plans to back away and sell its shares, raking in around £1.75 billion in the process.

Today, it was revealed by GI.biz that Vivendi will have sold off all of its shares in Ubisoft by the 5th of March 2019. Vivendi apparently plans to refrain from buying any Ubisoft shares for another five years, so there is a chance that this situation could creep up again in the future.

As part of Ubisoft's strategy to avoid a takeover, the publisher made a deal with Tencent, selling a small stake in the company to the Chinese giant.

KitGuru Says: The Vivendi issue came around at a bad time, as Ubisoft was in the middle of trying to restore its reputation. Three years on and the publisher seems to be back in the good books, with Assassin's Creed's popularity back on the rise, Watch Dogs 2 fairing well and Far Cry 5 smashing sales charts. 

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Ubisoft has managed to escape a takeover from Vivendi https://www.kitguru.net/gaming/matthew-wilson/ubisoft-has-managed-to-escape-a-takeover-from-vivendi/ https://www.kitguru.net/gaming/matthew-wilson/ubisoft-has-managed-to-escape-a-takeover-from-vivendi/#respond Wed, 21 Mar 2018 10:21:00 +0000 https://www.kitguru.net/?p=367909 Ever since late 2016, Ubisoft has been operating under the very real threat of a hostile takeover. Former Activision owner, Vivendi, had been increasing its stake in Ubisoft over the course of a year, something that Ubisoft's leadership was very much against. Now, it looks like the publisher has won the battle, as Vivendi will …

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Ever since late 2016, Ubisoft has been operating under the very real threat of a hostile takeover. Former Activision owner, Vivendi, had been increasing its stake in Ubisoft over the course of a year, something that Ubisoft's leadership was very much against. Now, it looks like the publisher has won the battle, as Vivendi will be selling off its 27.3 percent stake.

The news broke early this morning. Prior to throwing in the towel, Vivendi owned 27.3 percent of Ubisoft shares, if it had reached 30 percent, then it would have been required to make a buyout offer under French law. Instead, Vivendi will be selling off its shares and raking in £1.75 billion in the process. Meanwhile, Chinese publisher Tencent will be buying a small stake in Ubisoft.

 

Yves Guillemot will be buying more Ubisoft shares for his family to hold on to. Meanwhile Ubisoft itself will also buy back some of its own shares in order to maintain control in the future should another large corporation attempt to takeover.

Here is what Yves Guillemot had to say about all of this: “The evolution in our shareholding is great news for Ubisoft. It was made possible thanks to the outstanding execution of our strategy and the decisive support of Ubisoft talents, players and shareholders. I would like to warmly thank them all.”

With Tencent owning a stake in Ubisoft, the company will “accelerate its development in China” over the next few years, so expect that to be another major focus.

KitGuru Says: It has been a tumultuous 18 months with Vivendi looming over Ubisoft, but it looks like the publisher is safe from that now.

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US security panel deems Broadcom’s bid for Qualcomm as a potential risk to national security https://www.kitguru.net/tech-news/featured-announcement/matthew-wilson/us-security-panel-deems-broadcoms-bid-for-qualcomm-as-a-potential-risk-to-national-security/ https://www.kitguru.net/tech-news/featured-announcement/matthew-wilson/us-security-panel-deems-broadcoms-bid-for-qualcomm-as-a-potential-risk-to-national-security/#respond Tue, 06 Mar 2018 16:55:58 +0000 https://www.kitguru.net/?p=365974 Broadcom's attempt to take over Qualcomm has hit a roadblock, with a US government security panel deeming the deal as potentially harmful to national security.

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Yesterday we learned that Broadcom's attempt to conduct a hostile takeover of Qualcomm had hit a roadblock. It seems that Qualcomm contacted US investment authorities to launch an investigation, which incidentally led to Qualcomm's annual shareholders meeting being delayed. Now we have a few more details on the matter, with a US advisement panel deeming Broadcom's proposed takeover plans as a potential risk to national security.

The US Committee on Foreign Investment (CFIUS) has ordered a national security review of Broadcom's proposed deal. This came after receiving a letter from a security panel, which noted Broadcom's “relationships with third party foreign entities” as a cause for concern, in addition to its “business intentions with respect to Qualcomm”.

There are other reasons at play here, including the amount of money Qualcomm invests into research and development. The letter notes that Qualcomm typically ranks second among semiconductor companies in R&D spending, with Intel taking the number one spot. The US government sees value in Qualcomm's position in the market, with the company often acting as a leader in setting standards. This is particularly crucial now, with the 5G network race in full swing.

Essentially, a reduction in Qualcomm's long-term competitiveness and influence would have an impact on the United States. While Broadcom acquiring Qualcomm would cement the company as the third largest chip maker in the world, CFIUS is looking to “assess the likelihood” that this acquisition could “result in a weakening of Qualcomm's position” in the future. Broadcom's past acquisitions could be used as evidence of a weaker market position in the event of a Qualcomm takeover. The security panel has concerns over Broadcom's past acquisitions, in which Broadcom cut R&D spending down in order to boost short-term profits, favouring that over innovation and long-term product development.

Discuss on our Facebook page, HERE.

KitGuru Says: It looks like the US security panel found plenty of reasons for the government to be concerned over Broadcom's attempts to take over Qualcomm. No final decisions have been reached just yet, but for the time being, things don't seem to be going in Broadcom's favour. 

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As Qualcomm raises its NXP offer, Broadcom slashes $4 billion off of its Qualcomm buyout deal https://www.kitguru.net/channel/generaltech/matthew-wilson/as-qualcomm-raises-its-nxp-offer-broadcom-slashes-4-billion-off-of-its-qualcomm-buyout/ https://www.kitguru.net/channel/generaltech/matthew-wilson/as-qualcomm-raises-its-nxp-offer-broadcom-slashes-4-billion-off-of-its-qualcomm-buyout/#respond Thu, 22 Feb 2018 15:16:19 +0000 https://www.kitguru.net/?p=364853 For several months now, Broadcom has been attempting to acquire Qualcomm. Initially, Broadcom offered a $130 billion buyout, and then upped the ante to $145 billion. On both occasions, Qualcomm declined, which led to Broadcom announcing a hostile takeover strategy, which hinges on swaying shareholders at Qualcomm's next shareholder meeting. Since then, Qualcomm has been …

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For several months now, Broadcom has been attempting to acquire Qualcomm. Initially, Broadcom offered a $130 billion buyout, and then upped the ante to $145 billion. On both occasions, Qualcomm declined, which led to Broadcom announcing a hostile takeover strategy, which hinges on swaying shareholders at Qualcomm's next shareholder meeting. Since then, Qualcomm has been moving forward with its own proposed acquisition of NXP and recently raised its offer to buy the company to $44 billion, this has had the knock on effect of Broadcom reducing its own buyout offer for Qualcomm.

Previously, Broadcom's ‘best and final' buyout offer of $145 billion was based on Qualcomm completing its acquisition of NXP for $38 billion. However, it seems talks on that front have been stagnating, forcing Qualcomm to offer NXP $44 billion for a buyout. It seems that this has caused Broadcom to reevaluate Qualcomm's value once again, reducing its offer from $82 per share to $79 per share, knocking off around $4 billion in total value for the deal.

In Broadcom's statement, the company explains that it believes that “a responsible Qualcomm board could have preserved value” by working with Broadcom on the NXP transaction. Broadcom evidently did not have a seat at the table for these discussions despite its serious buyout offers, which likely has something to do with the fact that Qualcomm doesn't want to sell in the first place.

In Broadcom's words, “Qualcomm's board acted against the best interests of its stockholders” by adding excessive value to the NXP deal. While Broadcom doesn't agree with Qualcomm's decision in this instance, it is still determined to get its hands on Qualcomm one way or another and “remains committed” to delivering maximum value to Qualcomm stockholders.

KitGuru Says: At this point, Broadcom has given up on trying to convince Qualcomm's board to sell, and is instead appealing to shareholders instead. This particular announcement appears to be a move to disrupt confidence in Qualcomm's board in an effort to try and push a sale through. 

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Qualcomm rejects Broadcom’s ‘final’ takeover offer https://www.kitguru.net/channel/generaltech/matthew-wilson/qualcomm-rejects-broadcoms-final-takeover-offer/ https://www.kitguru.net/channel/generaltech/matthew-wilson/qualcomm-rejects-broadcoms-final-takeover-offer/#respond Fri, 09 Feb 2018 12:07:12 +0000 https://www.kitguru.net/?p=363494 Back in November, Qualcomm found itself in the sights of Broadcom, receiving a massive $130 billion takeover offer. At the time, Qualcomm rejected the bid, stating that the amount offered did not truly represent the value of the company. Rumors of a hostile takeover brewed in the months that followed, leading up to Broadcom's increased …

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Back in November, Qualcomm found itself in the sights of Broadcom, receiving a massive $130 billion takeover offer. At the time, Qualcomm rejected the bid, stating that the amount offered did not truly represent the value of the company. Rumors of a hostile takeover brewed in the months that followed, leading up to Broadcom's increased $145 billion offer earlier this week. This was said to be Broadcom's ‘best and final offer', but it wasn't enough to sway the Qualcomm board.

Doing the math, $145 billion works out to $82 per share. However, Qualcomm has said that the offer was ‘unanimously' rejected, with the company arguing that it “falls well short of the firm regulatory commitment” required. Regulators across the world already have their eyes on Qualcomm, with various anti-trust cases out against the company, such a huge merger between Qualcomm and Broadcom would invite more regulator scrutiny and in a worst case scenario, governments could block the deal on anti-monopoly grounds.

In a letter to Broadcom CEO, Hock Tan, Qualcomm's chairman, Paul Jacobs expressed his regulatory concerns: “It is indisputable that there are significant regulatory hurdles in your proposed transaction. It is also indisputable that if Qualcomm entered into a merger agreement and, after an extended regulatory review period the transaction did not close, Qualcomm would be enormously and irreparably damaged.”

The door for a takeover isn't entirely closed though. The letter also goes on to note that “If you are not willing to agree to do whatever is necessary to ensure a transaction closes, we will need you to be extremely clear and specific about exactly what actions you would refuse to take, so that we can properly evaluate the risk to Qualcomm’s shareholders.”

Qualcomm and Broadcom's top brass will be meeting again to discuss all of this. From the sounds of it, if Broadcom can guarantee that the transaction will close, then an agreement could be reached. However, making such a guarantee is a tall order and may end up being impossible. Just this week, Apple caught the eyes of the European Commission with its proposed Shazam acquisition valued at just $400 million, a minor acquisition compared to Broadcom's proposed $145 billion+ bid.

KitGuru Says: The Broadcom/Qualcomm proposal has a huge set of challenges to overcome and ultimately, may not be possible. However, it doesn't sound like we've heard the last of this story just yet.

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Sources claim Qualcomm is set to reject $130 billion takeover offer https://www.kitguru.net/channel/generaltech/matthew-wilson/sources-claim-qualcomm-is-set-to-reject-130-billion-takeover-offer/ https://www.kitguru.net/channel/generaltech/matthew-wilson/sources-claim-qualcomm-is-set-to-reject-130-billion-takeover-offer/#respond Tue, 07 Nov 2017 17:43:08 +0000 https://www.kitguru.net/?p=353567 Earlier this week we learned that rival chip maker, Broadcom, would be making a $130 billion bid for Qualcomm. The deal would merge the two companies, creating the third largest chip maker in the world. However, it seems that Qualcomm may not be interested in the unsolicited bid, as reports indicate that the company will …

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Earlier this week we learned that rival chip maker, Broadcom, would be making a $130 billion bid for Qualcomm. The deal would merge the two companies, creating the third largest chip maker in the world. However, it seems that Qualcomm may not be interested in the unsolicited bid, as reports indicate that the company will reject the offer.

According to a source speaking with the Financial Times newspaper, Qualcomm will reject the bid due to the regulatory risks involved. Such a move could be seen as monopolistic in the US and would be placed under much scrutiny.

On top of that, despite the overall buyout being worth $130 billion, the source claims that at $70 per share, Qualcomm considers the offer to be too low. Another source speaking with the paper said that the offer is seen as “opportunistic” as share prices have dipped in the wake of Qualcomm's legal battle with Apple.

The lack of royalty payments coming in is also doing damage to Qualcomm's bottom line, with the most recent earnings report showing a 90 percent drop in profits compared to the same quarter last year.

KitGuru Says: It seems hard to imagine turning down $130 billion, but it seems that Qualcomm's board may be happy to soldier on doing their own thing. This also indicates that Qualcomm is perhaps confident in its chances at court against Apple, which will lead to the company bouncing back. The offer may also undervalue Qualcomm's vast patent portfolio, which includes various 5G technologies that will come into play over the coming years. 

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Ubisoft to buy back 4 million shares to defend against Vivendi takeover https://www.kitguru.net/gaming/matthew-wilson/ubisoft-to-buy-back-4-million-shares-to-defend-against-vivendi-takeover/ https://www.kitguru.net/gaming/matthew-wilson/ubisoft-to-buy-back-4-million-shares-to-defend-against-vivendi-takeover/#respond Thu, 05 Oct 2017 10:26:39 +0000 https://www.kitguru.net/?p=349139 Over the last year, Ubisoft has been fighting off a potential takeover from Vivendi. CEO, Yves Guillemot has previously made it clear that he heavily opposes a Vivendi takeover and now, it looks like the publisher is taking action, with plans to buy back four million shares. In a notice sent out to investors, Ubisoft …

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Over the last year, Ubisoft has been fighting off a potential takeover from Vivendi. CEO, Yves Guillemot has previously made it clear that he heavily opposes a Vivendi takeover and now, it looks like the publisher is taking action, with plans to buy back four million shares.

In a notice sent out to investors, Ubisoft said that it plans to buy back four million shares between the 5th of October and the 29th of December this year. This move was previously authorised at the last investor general meeting in September.

Vivendi currently holds a 27 percent stake in Ubisoft and under French law, if Vivendi hits a 30 percent share, then it is required to make a buyout offer. Vivendi has yet to confirm whether or not it actually plans to make a buyout bid for Ubisoft, but the consistent rise in shares seems to indicate that it is planning to.

Ubisoft buying back shares will help delay Vivendi’s potential buyout bid but it might not stave it off entirely.

KitGuru Says: The Vivendi takeover has been looming over Ubisoft for a long time now. This move will keep the status quo in place for a while longer but unless Vivendi starts selling off shares, then a takeover is still on the table.

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Guillemot might lose Ubisoft to Vivendi in November https://www.kitguru.net/channel/generaltech/damien-cox/guillemot-might-lose-ubisoft-to-vivendi-in-november/ https://www.kitguru.net/channel/generaltech/damien-cox/guillemot-might-lose-ubisoft-to-vivendi-in-november/#respond Fri, 22 Sep 2017 19:12:38 +0000 https://www.kitguru.net/?p=347435 Ubisoft’s Yves Guillemot might feel ready to fight, but the threat from Vivendi is stronger than ever as the media conglomerate is set to receive double voting rights in November. This would result in the Vivendi breaching 30 percent voting rights, prompting a hostile takeover that could end the Guillemot’s control over the company. French …

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Ubisoft’s Yves Guillemot might feel ready to fight, but the threat from Vivendi is stronger than ever as the media conglomerate is set to receive double voting rights in November. This would result in the Vivendi breaching 30 percent voting rights, prompting a hostile takeover that could end the Guillemot’s control over the company.

French law caps voting rights at 30 percent for any one entity, forcing a hostile takeover attempt once that amount is breached which could end in one of two scenarios; either Vivendi wrestles control of the company or it will be forced to sell shares off to fall below the 30 percent barrier once again.

Currently, 26.6 per cent of Ubisoft’s share capital is owned by Vivendi, with the media empire holding 25.2 per cent of its voting rights according to the Financial Times. Come November 20th, Vivendi will have had these shares for two years, resulting in France's Florange Law kicking in. This law grants double voting rights and would push past the threshold, forcing Vivendi to move on Ubisoft.

Ubisoft shareholders have backed the Guillemot family at today’s annual meeting for the company. This has resulted in the approval of independent directors for Ubisoft’s board being approved as well as the extraordinary resolutions that require more than two-thirds of the overall vote and, given the board of directors’ consent, the possibility of employees participating in capital increases.

“We are delighted with the massive support of shareholders, which strengthens our determination and ability to defend the interests of all shareholders, and to pursue our strategy of growth and value creation,” Guillemot said. “Ubisoft consolidates its position in the industry among the world’s leading video game and entertainment companies.”

Extraordinary resolution 31 in which free shares are granted to employees was rejected due to not reaching the required two-thirds majority vote. When pairing this with the sky rocketing price of company shares due to Vivendi’s grasp of the majority, which are now worth 74 percent more than last year, means that Ubisoft’s current hold is weakened.

“Share-based compensation is an essential tool for recruiting and retaining top talent in the video game industry, and is a standard practice for competitive, modern, high-tech companies,” states Ubisoft. “Alternative solutions will be put in place to guarantee competitive compensation for talents.”

If you’re wondering what might be so bad about a Vivendi-owned Ubisoft, Guillemot spells it out, saying that “It’s difficult for us to be part of a conglomerate because speed and agility will suffer. When you don’t have agility in our industry you’re dead. The question is whether Vivendi will then make a tender offer or not. We feel it wouldn’t be in the best interests of their shareholders because buying a company in our industry aggressively is actually very risky.”

Vivendi has actually continued to abstain from any votes during the shareholder’s meetings last year and this year, keeping to itself about what it plans to do. Analysts conclude that the best course of action for shareholders of both Ubisoft and Vivendi would be the latter selling off its shares of the video game company and reinvesting it in its own ventures rather than pushing for an expensive hostile takeover that would upset the synergies as they currently are.

KitGuru Says: I am not sure if Ubisoft’s current success can be fully attributed to its independence, but it’s obvious that the Guillemot family are doing something right in steering the company. I am more interested to see where they take it than if Ubisoft were to be absorbed into a larger conglomerate and get suffocated.

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Ubisoft’s Yves Guillemot feels ready to fight Vivendi https://www.kitguru.net/tech-news/damien-cox/ubisofts-yves-guillemot-feels-ready-to-fight-vivendi/ https://www.kitguru.net/tech-news/damien-cox/ubisofts-yves-guillemot-feels-ready-to-fight-vivendi/#comments Thu, 03 Aug 2017 21:32:05 +0000 https://www.kitguru.net/?p=342701 Ubisoft and Vivendi have been toe-to-toe for the past two years, with Ubi’s CEO, Yves Guillemot resolute in keeping his company. Things have been escalating as Vivendi increases its shares in the company and despite currently holding 27 percent as of last month, Guillemot is still fighting to preserve Ubisoft’s independence. French law dictates that …

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Ubisoft and Vivendi have been toe-to-toe for the past two years, with Ubi’s CEO, Yves Guillemot resolute in keeping his company. Things have been escalating as Vivendi increases its shares in the company and despite currently holding 27 percent as of last month, Guillemot is still fighting to preserve Ubisoft’s independence.

French law dictates that once Vivendi has a stake of 30 percent, it must make an offer to buy Ubisoft, prompting Yves Gullemot and his family to do all they can to protect their company. Since the impending threat of a hostile bid came about, the Guillemots have been acquiring shares of their own, currently holding 13.6 percent. While this pales in comparison to Vivendi’s stake, Guillemot explains to GamesIndustry.biz why this doesn't feel like a losing battle.

“Staying alive means agility, creativity and the possibility to work in an environment with people that are happy to be there and can give as much as they can to create something that will please the market. Those values are very important to fight for, so it's not only me, it's the whole company, fighting to keep its values. That's why we have more of a chance, because it's not one guy saying ‘I want to stay as the boss', it's the company itself saying ‘this is our work, so we'll do whatever we can to make sure it stays that way'.”

The fight with Vivendi is a personal one for Yves and his family. As well as previously owning Activision, the French media empire has also taken over the leading mobile publisher Gameloft, a former family business belonging to the Guillemots. While one might think that the Guillemots could predict Vivendi’s moves as history is seemingly repeating itself, the CEO explains why the two instances are incomparable.

“[Ubisoft and Gameloft] have different philosophies,” he explained. “It's not easy to compare the two because mobile companies and AAA companies are very different. The creativity needed to make Ubisoft succeed is as important as it is at Gameloft, but we're a lot more dependent on it than them. 80% of the turnover done by Gameloft is recurring. A huge amount of the turnover we do every year has to come from innovation and new products.”

Yves added how grateful he is for the support he has received from other companies as well as the 12,000-plus employees in his own who would be directly affected by such a shift.

“We live in a dangerous world,” he says. “There are challenges, and the best will remain. We are under attack; we are trying to fight against it. We think we are ready to fight against those problems.”

KitGuru Says: Yves Guillemot is certainly composed despite such an aggressive attack on his company. Ubisoft might not be the best in the world but it is trying to get back in touch with its fans. It’s scary to think what a company focused on expanding its media empire would bring to the table for the average Joe gamer.

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Vivendi’s share of Ubisoft is still growing, at 24 percent https://www.kitguru.net/gaming/jon-martindale/vivendis-share-of-ubisoft-is-still-growing-at-24-percent/ https://www.kitguru.net/gaming/jon-martindale/vivendis-share-of-ubisoft-is-still-growing-at-24-percent/#respond Wed, 09 Nov 2016 08:47:19 +0000 http://www.kitguru.net/?p=311122 Despite a concerted effort by Ubisoft founders and executives, French multinational media conglomerate Vivendi, is still managing to increase its stake in the publisher. In the past few months it's increased its ownership of the company to 24 percent, cementing its attempt at a hostile takeover. Vivendi's last big stint in the video game industry …

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Despite a concerted effort by Ubisoft founders and executives, French multinational media conglomerate Vivendi, is still managing to increase its stake in the publisher. In the past few months it's increased its ownership of the company to 24 percent, cementing its attempt at a hostile takeover.

Vivendi's last big stint in the video game industry was as the parent company of Activision Blizzard, though that gaming giant bought its way out in 2013 for several billion dollars. From then Vivendi remained somewhat absent in the industry, until it began buying Ubisoft stock in late 2015 and then announced its intention to seize control of the company earlier this year.

guillemot

What Ubisoft executives look like right now. Probably. 

Since then it's managed to seize control of Ubisoft mobile publisher/developer subsidiary, Gameloft and has gradually increased its stake in Ubisoft itself, reaching just shy of a quarter this week. Ubisoft has attempted to defend itself from this takeover attempt, buying up shares and urging those with them not to sell to Vivendi, but it's not doing much to slow the tide.

While Vivendi is still a long way off from having a controlling stake in the company, what's concerning many of Ubisoft's executives is that all it really needs is 30 per cent in order to trigger an automatic takeover bid (thanks PCGN). This would put Vivendi in a very favourable position and could potentially see it wrest control of the company, which has been owned and operated by members of the Guillemot family for over 30 years.

Discuss on our Facebook page, HERE.

KitGuru Says: While this is all business and perfectly legal, it can't be nice to have a company as large as Vivendi this aggressively pursuing ownership of your company. That is the risk of disseminating shares as broadly as Ubisoft has done though. 

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Ubisoft spent another £106 million to prevent Vivendi buyout https://www.kitguru.net/channel/jon-martindale/ubisoft-spent-another-106-million-to-prevent-vivendi-buyout/ https://www.kitguru.net/channel/jon-martindale/ubisoft-spent-another-106-million-to-prevent-vivendi-buyout/#respond Tue, 27 Sep 2016 11:34:39 +0000 http://www.kitguru.net/?p=307214 Vivendi has been aggressively attempting to take over French publishing giant Ubisoft for the best part of a year, but its original founders have been fighting back. In a recent attempt to prevent Vivendi from becoming its new boss, Ubisoft has spent over £100 million to buy up a further 3.2 per cent of its …

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Vivendi has been aggressively attempting to take over French publishing giant Ubisoft for the best part of a year, but its original founders have been fighting back. In a recent attempt to prevent Vivendi from becoming its new boss, Ubisoft has spent over £100 million to buy up a further 3.2 per cent of its shares from a French investment bank.

After taking over Ubisoft publisher subsidiary GameLoft with a 51 percent share of the total stock, Vivendi has continued circling Ubisoft, quite publicly announcing its intention to gain a seat on the executive board. It's been buying up stock where it can and at the time of writing has acquired a total of 22.8 per cent of Ubisoft, edging it ever closer to that controlling stake.

Ubisoft executives have been hoping to stave this off however and along with encouraging current investors not to sell their stakes to Vivendi, have been buying back shares of the company to better protect them. The most recent move saw them purchase the 3.2 per cent share from the Bpifrance bank, as per PCGamesN.

coonandfriends

If only Ubisoft could call in its heroes to help

Ubisoft co-founder and and CEO, Yves Guillemot even released a statement thanking Bpifrance for selling back Ubisoft shares, as well as its ongoing support for the French publisher.

As much as an additional three per cent improves the position of current Ubisoft executives, it doesn't mitigate the fact that Vivendi has a large portion of the company's stock. It is expected that should it be granted a seat on the board of directors, that that nominee would push for an eventual full takeover by Vivendi.

Indeed it's not as far off as you might think. If it were able to acquire 30 percent, it would earn the right to put in a bid for the remaining shares to gain a controlling stake.

Discuss on our Facebook page, HERE.

KitGuru Says: Vivendi previously owned Activision/Blizzard, but sold its stake back to them a couple of years ago. As perhaps the most prolific publisher right now, Ubisoft is a smart purchase, but an expensive one. This is going to be a back and forth war which seems unlikely to end any time soon. 

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Ubisoft founders to buy shares to ward off Vivendi takeover https://www.kitguru.net/professional/jon-martindale/ubisoft-founders-to-buy-shares-to-ward-off-vivendi-takeover/ https://www.kitguru.net/professional/jon-martindale/ubisoft-founders-to-buy-shares-to-ward-off-vivendi-takeover/#comments Tue, 06 Sep 2016 10:32:10 +0000 http://www.kitguru.net/?p=305266 The Guillemot family which originally founded game publishing giant, Ubisoft, is set to buy up 3.5 per cent of the company's shares, in order to help ward off a hostile takeover from Videndi. This would bring the Guillemot's to around 12.5 per cent ownership of the company, increasing their stake by four million shares. Ubisoft …

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The Guillemot family which originally founded game publishing giant, Ubisoft, is set to buy up 3.5 per cent of the company's shares, in order to help ward off a hostile takeover from Videndi. This would bring the Guillemot's to around 12.5 per cent ownership of the company, increasing their stake by four million shares.

Ubisoft stock is currently trading around £30 per, so this represents an investment around £120 million in the French publisher. However it's not much compared to the amounts that Vivendi has been investing in Guillemot founded companies.

The French multinational media company has been investing hundreds of millions of euros in Ubisoft and its mobile game publisher, Gameloft, which it recently gained a controlling stake in, despite the Guillemot family's best efforts. They now want to stop that happening with Ubisoft, hence the stock purchase.

ubisofthq

Vivendi left the video game publishing game back in 2013, when it allowed Activision/Blizzard to buy up its stake in their joint ventures. However it soon began circling Ubisoft as a potential new project and it's been buying stock since. Currently Vivendi owns 20.1 per cent of Ubisoft and a full 56 per cent of Gameloft (thanks Reuters).

While the Guillemot family retains a director at Gameloft, it has conceded that it will not be able to regain control of the company. It now hopes to be able to do much better at protecting the interests of Ubisoft. This purchase is part of that plan, but it has also been reported that several members of the family have been courting other share holders to encourage them to refuse to sell to Vivendi, should the offer arise.

Discuss on our Facebook page, HERE.

KitGuru Says: Although Ubisoft isn't exactly the most beloved of game publishers, ranking up there somewhere with EA Games, you can understand the original founders wanting to keep the business publicly controlled, rather than at the whim of a mega corporation. 

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Vivendi raises stake in Ubisoft but takeover won’t happen for six months https://www.kitguru.net/professional/development/matthew-wilson/vivendi-raises-stake-in-ubisoft-but-takeover-wont-happen-for-six-months/ https://www.kitguru.net/professional/development/matthew-wilson/vivendi-raises-stake-in-ubisoft-but-takeover-wont-happen-for-six-months/#comments Tue, 21 Jun 2016 14:21:55 +0000 http://www.kitguru.net/?p=296761 Ubisoft has found itself in quite a predicament recently as a company known as Vivendi has been buying up shares in what could turn out to be a hostile takeover. However, while a takeover is still on the table, Vivendi's CEO has proposed a “fruitful cooperation” between itself and Ubisoft, As of last week, Vivendi …

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Ubisoft has found itself in quite a predicament recently as a company known as Vivendi has been buying up shares in what could turn out to be a hostile takeover. However, while a takeover is still on the table, Vivendi's CEO has proposed a “fruitful cooperation” between itself and Ubisoft,

As of last week, Vivendi now owns 20.1 percent of Ubisoft and once Vivendi hits the 30% mark, a public buyout offer would need to be made. However, Vivendi doesn't intend to hit that point for at least six months, according to a statement, instead, it would first like to get a seat on the board of directors and then go from there.

Ubisoft_E320141

As GamesIndustry.biz points out, this has all been part of Vivendi's aggressive push for shares in Ubisoft. Ubisoft's CEO, Yves Guillemot has previously expressed concern over a hostile takeover and branded Vivendi's rapid share buying as “unsolicited and unwelcome”.

Discuss on our Facebook page, HERE. 

KitGuru Says: At this point, Vivendi has bought itself quite a bit of leverage in Ubisoft but it doesn't sound like things are over yet. If things keep going at this rate, then Ubisoft may have a new owner next year.

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Regulator slams Three’s O2 buyout, demands Commission do more https://www.kitguru.net/lifestyle/mobile/jon-martindale/regulator-slams-threes-o2-buyout-demands-commission-do-more/ https://www.kitguru.net/lifestyle/mobile/jon-martindale/regulator-slams-threes-o2-buyout-demands-commission-do-more/#comments Mon, 11 Apr 2016 11:39:55 +0000 http://www.kitguru.net/?p=289301 The move by mobile network Three, to try and buyout other major UK network, O2, looks to have hit a snag, as the British antitrust regulator has raised concerns about a recent European Commission investigation into the merger. It described the remedies to cited problems as “materially deficient,” and wants to see it do more …

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The move by mobile network Three, to try and buyout other major UK network, O2, looks to have hit a snag, as the British antitrust regulator has raised concerns about a recent European Commission investigation into the merger. It described the remedies to cited problems as “materially deficient,” and wants to see it do more to address them.

The £10.25 billion deal would see Three's parent company, CK Hutchison Holdings Ltd. take control of the entire O2 network. While that would no doubt bolster Three's position in the market place, the concern from regulators has been that it would lead to higher prices and a reduced quality service to customers.

While these problems were highlighted by the European Commission, the UK's Competition and Markets Authority (CMA) believes it doesn't go anywhere near far enough in addressing those concerns.

o2three

“While I appreciate the considerable efforts made by the commission to explore remedies with the merging parties that seek to eliminate the adverse effects identified, it is clear that the remedies offered fall well short of what would be required to meet the relevant legal standard, as detailed in our case submissions,” said the CMA's head, Alex Chrisholm (via Ars).

Unfortunately for those who agree with Chrisholm though, the CMA doesn't have jurisdiction on this deal, the European Commission does. It still has until the 19th May to push for tighter restrictions on the deal, or to raise any other concerns, but it remains to be seen if it will do so.

Discuss on our Facebook page, HERE.

KitGuru Says: What do you think of Three's attempt to further constrict the British mobile marketplace? It seems like dropping from four major firms to three, would hardly help the consumer.

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Daily Mail parent company considering Yahoo buyout https://www.kitguru.net/channel/jon-martindale/daily-mail-parent-company-considering-yahoo-buyout/ https://www.kitguru.net/channel/jon-martindale/daily-mail-parent-company-considering-yahoo-buyout/#respond Mon, 11 Apr 2016 10:56:03 +0000 http://www.kitguru.net/?p=289248 Although it may not go it alone, with talks said to be ongoing between the Daily Mail and General Trust (DMGT) and private equity firms, the parent company of the Daily Mail publication is said to be in talks with Yahoo over a potential buyout. This was confirmed by the publication itself, though cautioned that …

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Although it may not go it alone, with talks said to be ongoing between the Daily Mail and General Trust (DMGT) and private equity firms, the parent company of the Daily Mail publication is said to be in talks with Yahoo over a potential buyout. This was confirmed by the publication itself, though cautioned that it was in the “very early stages,” of discussion.

Although seen by many as an antiquated brand and services catalogue, Yahoo is still a dominant force in the tech world, with thousands of employees and revenue close to $5 billion a year. Unfortunately for Yahoo though, that doesn't go very far and it also makes many billions in losses each year.

mail

Source: Wikimedia

Yahoo even extended its preliminary offer period to the 18th April, so the Daily Mail and others have a little longer to get their finances together. Other potential bidders include massive media conglomerate, Verizon.

Why would the Daily Mail want control of it though? Well for starters, the DMGT is more than just the Daily Mail, even if it the publication is the jewel in its crown. It has a huge online presence that would only be augmented by Yahoo's user base and makes a lot of money through advertising, which again, Yahoo would compliment.

It would also give the DMGT an in-road into America (as per TechCrunch), where its user base isn't as strong.

Discuss on our Facebook page, HERE.

KitGuru Says: I'm not sure I'd really notice if Yahoo disappeared inside the Daily Mail machine. Maybe its adverts would get even more click-baity.

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Yahoo investor goes rogue, wants to take over the company https://www.kitguru.net/channel/jon-martindale/yahoo-investor-goes-rogue-wants-to-take-over-the-company/ https://www.kitguru.net/channel/jon-martindale/yahoo-investor-goes-rogue-wants-to-take-over-the-company/#comments Fri, 25 Mar 2016 14:56:19 +0000 http://www.kitguru.net/?p=287995 A major investor of search and advertising giant Yahoo, has announced its intention to take control of the company through dominating the board of directors. To make that happen, it's put forward nine candidates and has asked fellow investment firms to join with it and help those members get elected, effectively giving it a much larger …

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A major investor of search and advertising giant Yahoo, has announced its intention to take control of the company through dominating the board of directors. To make that happen, it's put forward nine candidates and has asked fellow investment firms to join with it and help those members get elected, effectively giving it a much larger seat at the table.

Currently the investor, Starboard Value LP, owns just 1.7 per cent of Yahoo, worth around $570 (£400) million. The company as a whole is worth much closer to $33 billion, so if Starboard was able to take control in any meaningful way, this would be quite unprecedented.

However perhaps the sentiment it has is shared among other investors. It has cited repeatedly its disappointment at the way in which Yahoo is being run and its “dismal financial performance, poor management execution” over the past few years.

starboard

One thing we know for certain, Starboard knows how to take care of its employees dental needs

If it was able to gain control of the company – or some measure of it – Starboard claims that it would be open to new ideas, one being a large scale turnaround, selling off assets and splitting up different parts of the company. In essence, it wants to shake things up a bit (via TechCrunch).

Arguably that's what Marissa Mayer has attempted to do since becoming CEO of Yahoo back in 2012, but clearly not everyone has been fans of her acquisition strategy which has seen the firm buy up various startups and shift its focus to mobile advertising. Starboard would rather she focused her attention on selling off parts of the business – trimming the fat, as it were.

In-fact if it had its way, Starboard might see the entire company sold off. In its declaration of intent, it highlighted how Verizon has shown some interest in acquiring core components of Yahoos business, but that Mayer and the other executives haven't facilitated a furthering of that interest.

It remains to be seen if Starboard can generate much momentum behind its plans for a takeover, or whether if successful it can forge any of its speculative futures into reality, but it does suggest that the future for Yahoo could be a bit more exciting.

KitGuru Says: Although I don't think any consumers are particularly bothered about Yahoo's day to day operation, it is still a major player in the tech and online world. It's going to be interesting to see what happens next.

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Vivendi is trying to muscle in and take over Ubisoft https://www.kitguru.net/channel/jon-martindale/vivendi-is-trying-to-muscle-in-and-take-over-ubisoft/ https://www.kitguru.net/channel/jon-martindale/vivendi-is-trying-to-muscle-in-and-take-over-ubisoft/#comments Fri, 26 Feb 2016 12:29:29 +0000 http://www.kitguru.net/?p=285426 Vivendi is a company with a lot of fingers in a lot of pies, though most recently it took a step back from the gaming industry when it sold its stake in Activision/Blizzard back to the publishing giant. However it soon set its sight on another large corporation: Ubisoft, and has been aggressively buying up …

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Vivendi is a company with a lot of fingers in a lot of pies, though most recently it took a step back from the gaming industry when it sold its stake in Activision/Blizzard back to the publishing giant. However it soon set its sight on another large corporation: Ubisoft, and has been aggressively buying up shares in what looks like an attempt at a hostile takeover ever since.

The first buy up of shares it made last year netted Vivendi a six per cent stake in Ubisoft, but that was just the beginning. Since then its spent another $60 million (as per Eurogamer) which means it now owns a full 10 per cent of Ubisoft, including parts of its sister company Gameloft.

While companies like Vivendi regularly buy up shares of interesting firms that might benefit it in the future, Ubisoft is not pleased with this acquisition attempt. It released a statement saying that it considered the aggressive share buying as “unwelcome,” and that it would take steps to “preserve [its] independence.”

vivenditakeover

How do you think the characters would feel?

Vivendi is gunning hard for the French publisher though and in some cases is offering upwards of 50 per cent more per share than the going rate, which will be tempting for current stock holders to take advantage of. Since it now owns 30 per cent of Gameloft too, it  must (by French law) make a takeover bid to achieve a controlling 51 per cent stake in the business.

It may be that Ubisoft appeals to share holders of its main business and Gameloft and requests that they not sell to Vivendi, but stock owners are not always known for their moral stances. If it can't mount a defence though, Ubisoft may soon find Vivendi executives on its board of directors, which will give it further influence within the publisher's ranks.

Discuss on our Facebook page, HERE.

KitGuru Says: Although Ubisoft is often put up there with the likes of EA as some of the least loved publishers, would you be happy to see a company like Vivendi gain a controlling share?

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Security conference visitors gave away their Twitter passwords https://www.kitguru.net/gaming/security-software/jon-martindale/security-conference-visitors-gave-away-their-twitter-passwords/ https://www.kitguru.net/gaming/security-software/jon-martindale/security-conference-visitors-gave-away-their-twitter-passwords/#respond Fri, 22 Jan 2016 11:09:37 +0000 http://www.kitguru.net/?p=281772 As much as you have to applaud anyone for taking digital security seriously enough to attend a conference about it, you have to wonder how much they're taking in when they willingly give away their Twitter passwords. As part of a promotional move (and perhaps as a measure of attendee gullibility) the organisers of RSA …

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As much as you have to applaud anyone for taking digital security seriously enough to attend a conference about it, you have to wonder how much they're taking in when they willingly give away their Twitter passwords. As part of a promotional move (and perhaps as a measure of attendee gullibility) the organisers of RSA 2016 have been asking for Twitter details and many people with tickets willingly handed it over.

It's one of the most obvious personal security measures to take in protecting your online identity: if a website asks for your password to something else, don't input it. But that's exactly what many people did when the organisers of this year's RSA conference asked for Twitter username/email details and passwords to help publicise the event (as per the Telegraph).

The potential security problem with such a system was highlighted by some prospective attendees, who started noticing the rash of identical tweets from their fellow ticket holders. The tweet would read: “I'm going to #RSAC 2016  in San Fran! Who wants to come with me?” followed by a link to the RSA conference site.

rsac

Just a sample of those that auto-tweeted the message over the past few days

As the security gaff has become more known over the past couple of days, more tweets with a similar phrasing have appeared, highlighting how people would not be attending, or hadn't been silly enough to input their password into a third party site. Some even posted Rick Roll links along with it.

Although the Twitter hijacking doesn't appear to be anything more nefarious thanks marketing, it is worrying that so many people who are interested in security and are perhaps being sent by their firms to learn more, willingly fall flat at a basic bit of personal security.

Discuss on our Facebook page, HERE.

KitGuru Says: There are admittedly some third party Twitter services which require your password for automation, but you wouldn't put your details into a site to let it market through you, would you?

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Vivendi raises stake in Ubisoft https://www.kitguru.net/gaming/matthew-wilson/vivendi-raises-stake-in-ubisoft/ https://www.kitguru.net/gaming/matthew-wilson/vivendi-raises-stake-in-ubisoft/#comments Thu, 22 Oct 2015 19:42:55 +0000 http://www.kitguru.net/?p=272738 Last night, we heard that Vivendi, the same company that previously took over a majority stake in Activision, had begun acquiring shares in Ubisoft. At the time, the publisher's CEO expressed concern that Vivendi would keep raising its take in the company until it had a majority of shares under its belt and therefore, a …

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Last night, we heard that Vivendi, the same company that previously took over a majority stake in Activision, had begun acquiring shares in Ubisoft. At the time, the publisher's CEO expressed concern that Vivendi would keep raising its take in the company until it had a majority of shares under its belt and therefore, a significant amount of control over future endeavours.

Now, it seems that history might be repeating itself. Vivendi held a majority stake in Activision before the publisher acquired its shares back two years ago for $8 billion and now, Ubisoft is the new target. Vivendi's initial investment in Ubisoft saw it spend $161 million for just over a six per cent stake in the company, now that stake has been raised to 10.4 per cent, according to GamesIndustry.biz

Ubisoft_E32014

Ubisoft's CEO, Yves Guillemot has not yet spoke out again about the newly raised stake though as we saw in our report last night, it seems that he is opposed to the investments and would not want to see Vivendi control the majority of Ubisoft stock.

Discuss on our Facebook page, HERE.

KitGuru Says: It will be interesting to see if Vivendi continues to buy up Ubisoft stock over the next few weeks or months. Activision clearly had reason to shake the company a couple of years back and Ubisoft's CEO doesn't seem to appreciate their interest either. 

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Ubisoft CEO isn’t happy with ‘unwelcome’ $161 million investment https://www.kitguru.net/gaming/matthew-wilson/ubisoft-ceo-isnt-happy-with-unwelcome-161-million-investment/ https://www.kitguru.net/gaming/matthew-wilson/ubisoft-ceo-isnt-happy-with-unwelcome-161-million-investment/#comments Wed, 21 Oct 2015 21:11:32 +0000 http://www.kitguru.net/?p=272590 Ubisoft recently received a $161 million investment from a company known as Vivendi, which is known for aggressively pursuing companies within the entertainment sector. As it turns out, Ubisoft's CEO isn't too happy about the cash infusion, according to an internal memo circulating over at the publisher's offices. The internal email brands the huge investment …

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Ubisoft recently received a $161 million investment from a company known as Vivendi, which is known for aggressively pursuing companies within the entertainment sector. As it turns out, Ubisoft's CEO isn't too happy about the cash infusion, according to an internal memo circulating over at the publisher's offices.

The internal email brands the huge investment as “unsolicited and unwelcome”. In total, Vivendi's money bought it a 6.6 per cent stake in Ubisoft and CEO Yves Guillemot is worried that this isn't their first buy-in. The email was obtained by GamesIndustry.biz

Ubisoft_E32014

Vivendi could potentially continue to aggressively purchase massive amounts of shares until it has a majority stake in the company. Ubisoft's CEO is worried that if Vivendi did end up in control, that it wouldn't “understand [Ubisoft's] expertise and what it takes to succeed in [the games industry]”. Ubisoft will apparently fight off any potential take over in an effort to preserve its independence. Guillemot also doesn't want current Ubisoft developers to be distracted by this unwanted business and to keep focussing on game development for now.

Some of you might remember Vivendi as the company that bought a majority stake in Activision. A couple of years ago, the publisher had to pay $8 billion to regain its independence.

KitGuru Says: Ubisoft Has developed some huge franchises over the last few years, the company even has a typical formula that all of its games follow. However, the company and its future games could be adversely affected by a takeover from an outside company. 

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Ubisoft buys up Ivory Tower and The Crew https://www.kitguru.net/professional/design-create/jon-martindale/ubisoft-buys-up-ivory-tower-and-the-crew/ https://www.kitguru.net/professional/design-create/jon-martindale/ubisoft-buys-up-ivory-tower-and-the-crew/#comments Tue, 06 Oct 2015 07:46:59 +0000 http://www.kitguru.net/?p=270743 With The Crew set to receive a big expansion called Wild Run this November, Ubisoft has decided that it would like to have a bit more involvement in its developer than just publishing it. So it's purchased Ivory Tower, the developer behind the mixed-bag of a racer. There has been no mention of the publishing …

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With The Crew set to receive a big expansion called Wild Run this November, Ubisoft has decided that it would like to have a bit more involvement in its developer than just publishing it. So it's purchased Ivory Tower, the developer behind the mixed-bag of a racer. There has been no mention of the publishing giant renaming the studio or shaking it up too much, as it will continue to work on new content for The Crew, though there was a hint in the announcement that it may now help with other Ubisoft projects.

“After several years of successful collaboration, Ubisoft is excited to be integrating the studio’s expertise into its global network of talents,” a statement on the Ubisoft blog reads. It continues by talking up the relationship that the two companies have had, and that the experience Ivory Tower has developed in building “games as a service,” will help both continue forward.

ivorytower

“We’ve always enjoyed a very positive relationship with Ubisoft. Working together on The Crew, and celebrating its success, made us both understand that we have huge potential in continuing to work together in the future,” said Ahme Boukhelifa, managing director of Ivory Tower. “By joining Ubisoft, the team will continue to benefit from Ubisoft’s infrastructure, support, tools, technology and vision. In return, we will contribute our own expertise to the broader Ubisoft story.”

While it seems likely that the developer will be moved on to other projects – at least in some capacity – soon if it hasn't already, for now it's finishing up The Crew's big expansion, Wild Run, which is set to launch on 17th November. However, eager beavers can get a look-in early, with the beginning of a beta on the 15th October. To celebrate that, Ubisoft released a brand new trailer.

[yframe url='http://www.youtube.com/watch?v=hPlC-hBm__M']

Discuss on our Facebook page, HERE.

KitGuru Says: What did you guys think of The Crew? There's been a lot of high profile racing games on consoles and PC in the last couple of years. How do you feel it stacked up?

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AMD’s talks with private equity firm Silver Lake stalled – report https://www.kitguru.net/components/cpu/anton-shilov/amds-talks-with-private-equity-firm-silver-lake-stalled-report/ https://www.kitguru.net/components/cpu/anton-shilov/amds-talks-with-private-equity-firm-silver-lake-stalled-report/#respond Tue, 29 Sep 2015 20:23:38 +0000 http://www.kitguru.net/?p=269944 The discussions between Advanced Micro Devices and private equity firm Silver Lake Partners have stalled because the two companies have failed to agree on the price and the future of AMD. The chip designer is reportedly considering other options. Silver Lake was interested to acquire a 25 per cent stake in AMD, reports Bloomberg news-agency. …

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The discussions between Advanced Micro Devices and private equity firm Silver Lake Partners have stalled because the two companies have failed to agree on the price and the future of AMD. The chip designer is reportedly considering other options.

Silver Lake was interested to acquire a 25 per cent stake in AMD, reports Bloomberg news-agency. Representatives for the two companies met over the summer, but did not reach any agreement. The talks stalled after the parties failed to agree on a price and strategy, according to people familiar with the matter.

AMD’s current market capitalization is around $1.3 billion, hence, 25 per cent of the company’s stock would cost around $325 million, if acquired on the open market. However, $325 million may be less than AMD needs to fund development of products in 2016 and 2017. In today’s realities, this is $100 million more than AMD spends on research and development per quarter, or design cost of two complex system-on-chips made using a FinFET process technology.

amd_lone_star_campus

AMD has been losing market share to Intel Corp. and Nvidia Corp. for several years now. The company hopes that its upcoming microprocessors – code-named “Summit Ridge” and “Raven Ridge” based on the “Zen” micro-architecture will help it to regain share from Intel. In addition, the company readies code-named “Greenland”, “Baffin” and “Ellesmere” graphics processing units powered by the next iteration of AMD’s GCN architecture, which should help it to become more competitive against Nvidia.

Silver Lake is a major private equity firm, which invests in high-tech companies and sells its stake afterwards. Silver Lake has rather strict requirements for companies it invests in. For example, it can demand changing strategic goals or business approaches. Silver Lake has invested in such giants as Dell, Seagate, Avago and Alibaba.

AMD and Silver Lake did not comment on the news-story.

Discuss on our Facebook page, HERE.

KitGuru Says: Silver Lake hardly ever makes large acquisitions without partners. For example, Silver Lake teamed up with Andreessen Horowitz and the Canada Pension Plan Investment Board to acquire 65 per cent of Skype in 2009. In a bid to buy out Dell several years ago, Silver Lake collaborated with Microsoft, Barclays, Credit Suisse, Bank of America and Royal Bank of Canada. If Silver Lake is interested in making an investment in AMD, it may well have a potential partner.

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