February 11, 2005

Electronic Arts May Buy More Ubisoft Shares

Electronic Arts said in a French filing it may buy more shares of Ubisoft and seek representation on the board of directors. The company has already acquired 19.77% of Ubisoft and is open to buying a controlling stake. Ubisoft is vowing to stay independent and is looking at ways to fight off what it considers a hostile EA bid.

Unfortunately for the Ubisoft founders their voting control is only 22.8% vs. EA's 20.88%. It won't take much more buying for EA to take over. Ubisoft owns many popular intellectual properties like the Splinter Cell and Prince of Persia series.

EA said at the time it wanted to "keep all its options open regarding this investment in Ubisoft and could buy more Ubisoft shares, possibly a controlling stake". Ubisoft shares have gained over 80 percent since EA bought the stake on Dec. 20, sparking speculation it could launch a bid. They closed Wednesday at 31.68 euros.