Electronic Arts now holds just under a quarter of all voting rights in Ubisoft after having owned shares in the company for over two years.
EA's increase in voting rights does not come as a result of having purchased additional shares, but due to the length of time it has held a stake in the company. Ubisoft spokesman Emmanuel Carre explained, “It's in the company's statutes: If you have shares for more than two years, that doubles the voting right... It was expected.”
EA now owns 15.4% of Ubisoft's share capital and 24.9% of the voting rights.
The publisher first
bought shares in Ubisoft in 2004, in a move that was
described by Ubisoft CEO and co-founder Yves Guillemot as “Hostile”. EA now has more voting power than the Guillemot family, which has 19.2% of the votes and owns 13.4% of the company.
EA reserves the right to increase its stake later in the year, and could opt to take control of the company. It does not currently seek to nominate board members, the company said according to a filing from France's financial-markets regulator, the Autorité des Marchés Financiers.
The news raises concerns for SPOnG about the state of our industry. The world's largest games publisher owning a large chunk of one of its main competitors does not point towards a diverse market and development community.
Source: Bloomberg