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http://www.gamesindustry.biz/content_page.php?aid=6016

This news is just as huge as the NFL deal. EA can't be stopped! It is trying to purchase 20% of Ubisoft, to gain majority stake. If it succeeds in a hostile takeover, I fear for Splinter Cell

I don't know much about the stock market, but isn't there some way they can pull/buy back shares before this happens to retain internal control of the corperation ?

One of the Links at the bottom is about the UbiSoft employees moving to EA, being deliberately circumvented.

With alot of the industry consolidating under pressures of a the market disappating to piracy, I'm actually surprised it has taken so long for things to start getting bitchy.

Eidos' actions last year with Core Design have truely hurt them more than they want to admit, especially with the rumours being that Circle Studio that houses 35 of the original Core Design staff, including the creators of Lara Croft Tomb Raider Franchise have moved to UbiSoft.

This past year has been extremely profitable for UbiSoft and more over they are currently standing toe to toe with EA Games, who have been trying to make deals left-right-and-center just to make sure they're sitting pretty for the next few years.

Thier ranges of EA Sport games have been taking heavy losses, as have alot of thier sequel games. Big sellers such-as Command & Conquer, The Sims and Medal of Honour; have all seen a huge drop in sales despite new versions appearing in the last 2years.

EA are in trouble, while still sitting pretty from an adverage persons poing of view. Thier market share has been dropping to competitors.

THQ, Atari, Activision, Eidos, and UbiSoft appear to be the major publishers now. Microsoft will never be in trouble until Windows and Office start taking hits, with Windows 9x/NT Source having to be opened up before 2006 the next year does look rocky for Microsoft too, particularly with Windows 6.0 having to be scaled back and redeveloped to provide more of a transition to .NET rather than throwing people in at the deep-end. Microsoft are playing it safe, which does mean that this current epidemic is hitting everyone harder than is realised.

If EA can pull off buying out UbiSoft for a hostile takeover, that will provide them with the stability to monopolise. As well as the companies currently making the innovative industry games.
This said, the likelihood of this happening is going to be small, as it is likely UbiSoft will do everything to stop this.

Troubling time, no?
In-fact something more interesting to note is the recent technological alliance of Nintendo and Microsoft. As they're next generation consoles are both going to be using OSs capable of using .NET 2.0 and DirectX9.0c (a.k.a. XNA)

With both machines being developed in such a way, not to mention both using new proprioty DVD formats and TCPA Hardware. What we're looking at is unless Sony can pull something special from the 'Starcube' what we'll be seeing is a shift in company powers console wise.

Got a very interesting year ahead of us.

But who would do that? If the largest shareholders as of now own less than 20%, it's probably next to impossible for them to buy back shares. They can only buy if shareholders are willing to sell. If EA is the type to buy 100% of a company outright (which they are), Ubisoft shares might become somewhat valuable soon



I believe that link is regarding the news earlier this year when EA opened their office in Montreal they "stole" many of the talent from Ubisoft. Ubi obviously sued because the talent holds many valuable trade secrets and most employees nowadays sign forms agreeing not to work for competition for a set number of years.

Heh, yeah I know about those NDA Contracts.. didn't before my little falling out with Eidos. There are specific clauses in the contracts that allow you to circumvent them, provided you know how. Alot of lawyers are useless with the legalities of the games industry and publishers really take advantage of that.
Again that's a lesson I learnt the hard way.

The news is interesting, but on the whole isn't likely Ubi will just let them. Problem is, if the majority steak is 20%, that means alot of the company is divided up between numerous sources. You'd think Guillimont would own the majority as it stands, if his is under 20% that is quite odd. Normally a majority holder will keep 51% to make sure that take overs are done in the board room rather than the stock exchange. EA could then purchase a seat but not control.