Ubisoft CEO claims EA takeover could happen

The share price in French publisher Ubisoft rose sharply yesterday following comments from CEO Yves Guillemot, who admitted that a take-over by industry powerhouse EA could happen.

In a statement made to French newspaper Les Echos, Guillemot hinted that any acquisition of Ubisoft would not come cheap, but that reasonable offers would force the company to consider accepting, for the benefit of shareholders and employees.

"We are not safe from a hostile action from Electronic Arts, which it would be difficult to block if they make a genuinely interesting offer," Guillemot told the newspaper.

Suggesting that the company had "clearly demonstrated its value to industry players" and that any acquisition offer would not be a cheap deal, Guillemot added "I doubt that our shareholders could be won over by a cut price."

A successful takeover bid would certainly benefit shareholders and all employees who own company shares, as the price rose steeply based purely on the rumour and possibility of an EA acquisition deal. Share price climbed from EURO 1.36 and settled at EURO 42.40 at the close of business yesterday.

Shares in EA, a company which clearly dominates the games charts again this week, currently hold at USD 58.46 (EURO 47.8). The acquisition of Ubisoft would see an almost unassailable rise in EA's dominance and market share in the industry. Guillemot believes that Ubisoft have enough strength to shrug off a takeover offer, but admits: "If somebody is interested in our competitive advantages and this person is willing to pay for those at their right price, then we will choose what is best for our shareholders and our employees."