Mobile game juggernaut Gameloft has ceded more ground in its fight to stop a hostile takeover by French media giant, Vivendi.
Mobile game juggernaut Gameloft, creator of Modern Combat and Order & Chaos Online, has ceded more ground in its fight to stop a hostile takeover by French media giant, Vivendi.
After purchasing over 30 percent of Gameloft’s stock in February this year, Vivendi was forced to table a mandatory takeover bid.
Although the bid itself was mandatory, there was no pressure for other investors to sell, meaning the acquisition hinged on Vivendi’s powers of persuasion.
Bloomberg, however, is reporting that Vivendi has won the affections of a majority of Gameloft shareholders, meaning it can now proceed with a takeover.
The news outlet says "people familiar with the matter" have agreed to hand over their stock for 8 euros per share -- 33 percent more than Vivendi initially offered.
According to the report, Vivendi is also being backed by Amber Capital, which holds a 14.6 percent stake in the mobile studio.
"A first door has been unlocked with Gameloft,” said Antoine Bonduelle, fund manager at Alma Capital & Associés, speaking to Bloomberg. "The focus and the battle are now clearly on Ubisoft.”
Last year Vivendi spoke of its desire to unite Gameloft and Ubisoft -- both of which are run by the Guillemot family -- under one banner, and recently upped its stake in the Assassin's Creed creator.
According to the company, its bids are simply "part of a strategic vision of operational convergence between Vivendi’s content and platforms on one hand and the Ubisoft and Gameloft productions in video games on the other."
Ubisoft and Gameloft aren’t exactly thrilled with the idea of a Vivendi takeover, though, with Ubisoft CEO Yves Guillemot calling the company's attention both "unsolicited and unwelcome."
For its part, the Gameloft board also spoke out against the move, stating categorically that "the offer launched by Vivendi has no strategic interest for Gameloft.”
“The board of directors unanimously considers that the offer is not in accordance with the interests of the Company, of its shareholders and of its employees," added the board.
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