Ubisoft Staff Threaten to Leave if Vivendi Takeover Goes Through - Research and Markets

24 Mar, 2016, 11:29 ET from Research and Markets

DUBLIN, March 24, 2016 /PRNewswire/ --

Ubisoft Entertainment, the French video-game maker responsible for blockbuster titles including the Assassin's Creed series, is using an unusual tactic to counter an attempted takeover from Vivendi SA. While businesses typically use lawyers, bankers and other corporate roles to prevent a takeover, Ubisoft's chief creative employees are threatening to leave the company if the deal goes through. The global gaming market is set to grow at a CAGR of 6.59% by 2019, according to a report available from Research and Markets, but the takeover could have an negative effect on this growth if Ubisoft lose the staff they need to continue creating AAA video games.

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This isn't the first hostile takeover Ubisoft has contested. Ten years ago Electronic Arts tried to purchase the company but a similar argument about the importance of the small number of staff behind a successful game prevented the acquisition. Ubisoft, the third largest independent game maker in the world, has already sought out investors to avoid the takeover but has been unable to stop Vivendi's so far. Ubisoft is relying on the threat of staff leaving to make the company financially unattractive for acquisitions.

Ubisoft specialize in a range of video game types and formats such as massive multiplayer online games like the recently released 'The Division'. The global mmo games market is forecast to grow at a CAGR of 8% by 2019, as noted in a recent report, but this growth could be affected by industry issues like Vivendi's attempted takeover. 

Likewise, the global online gaming market is set to grow at a CAGR of 11.95% by 2019, as predicted in an industry report, but a mass withdrawal of Ubisoft staff could hinder this growth.

For further information on this topic, and a full list of all related documentation, please visit the Gaming section at http://www.researchandmarkets.com/rm/NKIR.

Source: http://www.bloomberg.com/news/articles/2016-03-24/ubisoft-wields-threat-of-talent-exodus-to-thwart-hostile-vivendi

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