Chinese tech company Tencent ( OTCPK:TCEHY ) intends to raise its stake in French video game maker Ubisoft ( OTCPK:UBSFY ), known for its Assassin's Creed franchise, according to Reuters .
The news outlet, citing four sources with direct knowledge of the matter, note that it's unclear how much of Ubisoft ( OTCPK:UBSFY ) that Tencent ( OTCPK:TCEHY ) is going to buy. Two of the sources said Tencent intends to become Ubisoft's ( OTCPK:UBSFY ) largest shareholder
In 2018, Tencent ( OTCPK:TCEHY ) purchased a 5% stake in Ubisoft.
The sources added that Tencent ( OTCPK:TCEHY ) has reached out to Ubisoft's ( OTCPK:UBSFY ) founding Guillemot family to discuss the transaction. The Guillemot family presently owns 15% of Ubisoft.
Two of the sources added that Tencent ( OTCPK:TCEHY ) could pay $101.84, or 100 euros, per share for the added stake after paying 66 euros for the 5% stake in 2018.
The news outlet noted that details of the deal are not finalized and could change, but a term sheet has been sent to the Guillemot family.
Ubisoft and Tencent ( OTCPK:TCEHY ) did not immediately respond to a request for comment.
The move comes as the Chinese government has restarted to allow video games back on to the domestic market, but has not approved games from Tencent ( OTCPK:TCEHY ) in any of its recent lists.
The Shenzhen, China-based Tencent ( OTCPK:TCEHY ) already owns stakes in other foreign video game makers, including U.S. firm Epic Games, the maker of Fortnite , as well as Riot Games.
Tencent ( OTCPK:TCEHY ) also owns a majority stake in Finnish mobile game maker Supercell, which created the popular Clash of Clans game, as well as others.
Earlier this week, Logitech G, brand of Logitech ( LOGI ), and Tencent's ( OTCPK:TCEHY ) Tencent Games announced a partnership to bring a cloud gaming handheld to market later this year .
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Tencent to raise stake in Ubisoft, become company's largest shareholder: report