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All right, let's get into this We have an interesting story here coming from a French news website This French website is capital FR and I happen to have a family member who is from France believe it or not I have a background in my family history from France and I had them go over this article in and And kind of just give me the abridged version of it to see if it lines up with Google translate and It it turns out that it looks like it's possible that Ubisoft Might be a bio target now to buy out Ubisoft requires a lot You have to own at least 51% of the shares to instigate what's known as a bio now famously Vivendi or maybe in this infamously at this point Vivendi was very very close to buying out Ubisoft at one point and it took the CEO and founder of Ubisoft is Guilmotte a lot of meetings a lot of Convincing to remaining shareholders to not hand over the rest of the company to Vivendi and ultimately his plea worked out Vivendi sold off its shares and Ubisoft was able to not be bought out by that company which is a company that previously bought out Activision So we know That Ubisoft has almost been taken over before now some people might wonder Oh, you know with all that drama at Ubisoft Some people have been calling for use game on its head But to be honest if it wasn't for him there wouldn't be an Ubisoft probably don't work at anymore anyways, so Yeah, he's gonna get a little bit more leeway than maybe people think he deserves Bottom line is this article and I'm just gonna read the translated version because what I was told was kind of a brief summary And I feel like the translation provides a little bit more context here So here is what Google translate is telling me it says Monday's announcement of Microsoft's takeover of video game publisher Bethesda is fueling speculation in the industry Ubisoft looks like a target and could be prey for Sony Google or Amazon the video game sector is booming it must be said that the spectacular takeover announced the other day of Game publisher Bethesda softworks for seven point five billion dollars in cash by giant Microsoft has set fire to the powder cake After having already been one of the few stocks to escape yesterday's general decline in the stock market Ubisoft gained three point three eight percent The one of the strongest increases in the fbf 120 index due to its status as a potential target Ubisoft stock is buoyed by speculation about its future as industry concentration continues Indeed after the acquisition of Bethesda what will be the reaction of Sony or even more so Google or Amazon? LCM wonders the research unit points out the targets of this size are very rare in Ubisoft Happens to be one of them Bethesda has according to it around 3,000 employees which makes it a medium-sized publisher compared to the 10,000 or so employees Electronic Arts has or the 18,000 employees of the Ubisoft group. However, the Vandy's last attempt to buy out Ubisoft was unsuccessful however companies at Google and Amazon have much greater financial power and What's interesting about all this isn't that I think Microsoft's gonna do this because this is gonna be more expensive than the seven point five billion they paid seven point five billion for Just just for what should we call it Bethesda and like Ubisoft is like six point four billion or so cash like on hand in their bank Let alone what that company is actually worth on the whole to buy out Ubisoft is going to cost I Mean 20 billion it's gonna be an absolutely insane number if anybody actually does it so Who would do it? Well Microsoft I don't think is gonna go much higher than the acquisition. They already did of Bethesda But I do think that there's gonna be some companies seriously considering this You can look at Google obviously they have Google stadia They would love to lock up Ubisoft Ubisoft was a very very early supporter of stadia However stadia sells games in a traditional manner matter of $60 a pop It's not really anything unique compared to the rest of the video game industry and obviously You know stadia hasn't been doing so well is Google really gonna pump that kind of money into Into a video game company when the product they have created for Said said sort of acquisition isn't exactly taking off. It feels like another one of those Google products It's eventually going to just be dropped. All right that being said We have to consider obviously Well Amazon Amazon just announced Luna for those who don't know what Luna is because Unfortunately, it happened at a time that I couldn't talk about it Luna is their streaming service, right? Amazon Luna is a streaming service a subscription based streaming service It's like really really really cheap like six dollars a month And you get access to a whole bunch of games now that doesn't include Ubisoft's game So looks like Ubisoft is going to have a separate Subsection subscription service in this so kind of you at like when you go on cable TV And you have like your cable TV subscription, but then you know you have an HBO a stars a Cinemax subscription It's kind of like what's here So you have your base subscription that gets you access to the indie games and some other companies games And then you have obviously the more premium subscription to Ubisoft. It gives you access to all the Ubisoft games It's kind of like a EA access Except, you know a little bit extra in addition to the fact that it's only six bucks For Luna is probably going to make whatever Ubisoft charge charges Which is probably something like ten bucks or less pretty attractive on that platform And Amazon is one of basically three companies in the world that have the sort of server Infrastructure that can properly pull off game streaming so it's believable. They could do something the thing is steady actually works It's just how they're The how they're handling the money side of it Doesn't make sense to pierce the market now We presumed xCloud from Microsoft was going to end up going the route of a paid service fee like Luna But Amazon has been buying up game companies, you know quietly We don't talk about it very often. They have bought out a few game studios Now we haven't seen the fruits of the labor yet, but they bought out a few of them Would they be willing to sink 20 billion or so in divine or Ubisoft and suddenly they becomes Luna exclusive? obviously Ubisoft and use game out would do everything possible to prevent this he the current guy who runs Ubisoft does not believe in buyouts He wants Ubisoft to remain independent. He thinks their best of their main independent their games end up being everywhere They don't have any oversight to bigger companies But on the other hand they we are in well a pandemic still and Investors aren't going to necessarily turn down The ability to sell out and make millions and millions and millions of dollars So it's possible that the offer from you know Someone like Amazon could be so overwhelming to investors that they would gladly give up their shares to get a big Big payday and set themselves up for the rest of their lives or children's lives or whatever It's it's just entirely possible that Amazon could do it and remember the guy who owns Amazon Who well not really owned but I guess runs Amazon? Is literally the richest guy in the world? So this 20 billion dollar acquisition would be nothing for Amazon So the question is are they going to do it? Is Ubisoft going to get bought out or do does does use game out have enough loyal? Investors on his side to prevent it. This is one thing that makes an acquisition of Nintendo very difficult We've not talked about this much in the past because there isn't a realistic chance anyone could take over Nintendo at this point But there are certain families that hone huge chunks of Nintendo shares that Prevents Nintendo from being a buyout candidate because these families are like literally Totally loyal to Nintendo as a company and are not going to sell their shares It's basically something they just hold on to to prevent buyouts and hostile takeovers Because that's what can happen if a company gets 51% so Nintendo is protected because they have bear they have a lot of shares with trusted People that you know as far as we aware will not abandon Nintendo Ubisoft has some big shareholders that seem to be like that But Vivendi was so close to pulling it off Does he still have enough in a down economy worldwide that some investors would consider taking? Whatever is being offered and just cashing out That is an interesting question now This isn't going to affect anything with Ubisoft now or next year because right now these companies aren't doing anything That we're aware of again This whole Bethesda thing has flipped the whole video game Situation on its head and right now anything is possible Personally, I want Ubisoft to stay independent. They need to fix their internal stuff Nick That's just I'm not going to get into it, but Ubisoft has some problems internally They need to address, but I want them to stay independent. I think they're best independent You know, I know that I was kind of Excited I guess a little bit by Microsoft's acquisition of Bethesda but part of that's because I think Bethesda needs some oversight to fix some of their Issues with their development string and fix some issues in their engine So I think Microsoft might actually be a benefit to them and being able to provide money in backing to do some of those things And make the next Elder Scrolls the best it can be and all that but There's a Ubisoft is I don't think an acquisition actually improves the content It just makes it platform exclusive and we live in an age where platform exclusivity is a big deal And you're gonna see companies especially with these streaming services try to buy up a lot of these companies You know, obviously Microsoft is working directly with EA with EA access You know, I'm not saying Microsoft's planning to buy EA I'm just saying that you know, they seem to be trying to lock something up with them You know, even if Amazon doesn't buy Ubisoft could they lock something up with them and prevent Ubisoft games from being streamed on xCloud there's gonna be some interesting stuff happening and We'll have to see how this industry takes shape over the coming years. I am with Andy Robert Jansson from Nintendo Prime Thank you so much for tuning in and I'll catch you in the next video