Ubisoft Entertainment Tries to Fend Off Takeover

French media conglomerate Vivendi (NASDAQOTH: VIVHY) has interests in various entertainment assets, including Universal Music Group, and its recently acquired mobile game maker Gameloft, which was founded by one of the Guillemot brothers. That name might be familiar as they also co-founded the French video game publisher, Ubisoft (NASDAQOTH: UBSFF), in the 1980s.

Vivendi has a history of investing in video game companies. From 2007 through 2013, it owned a controlling stake in Activision Blizzard (NASDAQ: ATVI), and now, Vivendi owns a 26% stake in Ubisoft and may be angling for a possible takeover of the maker of the popular Assassin's Creed franchise, according to Bloomberg.

This could present a problem for Ubisoft investors if Vivendi is successful. Ubisoft is doing great on its own, which is reflected in the stock's gain of over 600% over the last five years, and the France-based game maker could just be getting started. The last thing Ubisoft wants is a large conglomerate second-guessing its every move, especially when the video game industry depends mightily on creativity and risk-taking.

Source: Fool.com