EA Plan to take over Ubisoft

PARIS (Reuters) – Ubisoft and U.S. giant Electronic Arts are holding talks two months after Ubisoft dismissed EA’s acquisition of a near-20 percent stake in the French video game maker as “hostile,” the Wall Street Journal said on Wednesday.

The talks are still preliminary and running parallel with other approaches that family-run Ubisoft is making to broker solutions that might shake off a bid from EA but they could be the beginning of an eventual agreement between the two, the paper said, citing people familiar with the situation.

Ubisoft declined to comment.

By 4:11 a.m. EST, Ubisoft shares had gained 4.39 percent at 33.05 euros. The shares have soared 95 percent since EA bought a 19.77 percent stake in Ubisoft on Dec. 20, sparking speculation it could launch a full bid for the firm.

EA, the world’s largest video game maker, earlier this month reiterated it might add to its stake in Ubisoft and seek representation on its board.

Ubisoft has vowed to stay independent and has dismissed EA’s approach as hostile until it received more information.

TALKS ON PRICE

Tentative talks between both companies are on the takeover price EA might be willing to pay and how Ubisoft’s management might be reshaped, the Wall Street Journal said.

Ubisoft’s management said last month that a study by its adviser and shareholder Calyon, the investment bank of Credit Agricole, put a valuation of 33-35 euros per share on Ubisoft based on the value of its studios and brands.

But, adding up the value of the distribution network and a stake in French video games firm Gameloft, the price tag could near 40 euros, some analysts say. That would be double the 19.69 euros a share EA paid for its stake in Ubisoft.

EA, Ubisoft’s largest shareholder which also has 20.88 percent of its voting rights, has said it is acting alone and might sell or buy more Ubisoft shares, including a controlling stake.

The Guillemot brothers, Ubisoft’s founders, jointly own 17.5 percent and have 22.8 percent of the voting rights.

Caisse des Depots et Consignations, a state-owned French financial institution, holds about 6 percent of Ubisoft’s capital. BNP Paribas has a stake of some 4 percent and Calyon a little over 5 percent.

Ubisoft is an attractive target, analysts said, given a free float of nearly 70 percent, 2003/04 fiscal year sales of 508 million euros ($659.2 million) split between Europe and North America, and a portfolio of more than 1,000 titles including a variety of Tom Clancy hit franchises like “Splinter Cell.”

With cash of $2.5 billion, EA could also easily afford Ubisoft, which has a market value of about 559 million euros.

($1=.7706 Euro)

D’ni League of Activites to Re-open

From Eric L;

Dear friends,

As you all know by now, the D’LA site has ceased to exist as you remember it. However, I am pleased to announce that the site is far from dead. I have been asked to help it continue, and I believe the next incarnation of the site will be considerably more useful for the Uru community at large.

Just before the closure, Maztec had planned a complete redesign of the site, as well as a refinement of its focus. Where the former D’LA site primarily focused on a small group of people trying to organize large events, the new site will exist to support all of you in your own event planning. The idea is to provide you with a place to announce, plan and organize your events, as well as gather and organize participants. I have decided to carry on with Maztec’s original idea.

As I’m sure you can well imagine, this is an ambitious task and will take some time to develop. In essence, we are building a complete application into the website, and we are writing it from scratch. My intention is that once the framework has been laid, I will start making parts of it available so that it becomes useful as quickly as possible. Before that happens, I hope everyone can be patient with us. There is still a lot to do.

Shorah,
Eric L

View the DLA website

Autographed Uru CC Charity Auction

From MystWorlds;

In the on-going Ubisoft eBay Charity Auction to raise funds for the Tsunami Relief Effort, Ubisoft has had several Myst games and related items up for bidding. This week is no exception, with an autographed copy of Uru: Complete Chronicles available. The box has been signed by Rand Miller and members of the Cyan Worlds development team. This is a must-have for every Avid Fan’s collection. Good luck!

Bid on the item.