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Ubisoft CEO Speaks out Against EA Move

Posted by Zonk on from the ubisoft-and-the-beanstock dept.

Gamespot is reporting that Ubisoft CEO Yves Guillemot has spoken out against EA's "hostile action". From the article: "Considering the industry practice of communicating informally about such decisions, we were disappointed, to say the very least, that EA chose not to inform us of their specific plans beforehand." Further, Voodoo Extreme is reporting that a financial report may suggest the French government is going to assist Ubisoft in staying out from under EA's thumb.

1 of 365 comments (clear)

  1. French Financial Systems by MBraynard · · Score: 5, Interesting
    The French system is different from the US/UK system. In the US/UK systems, the shareholders interest come first before the law. They can lay people off, off-shore jobs, merge, etc. if they think that is what will best enhance shareholder value. This is a good thing because it makes company's more competitive and, because the guarantee of control is there, it is easier to raise funds from investors for new job-creating project/companys/IPOs.

    In France, however, management has priority in the law. You might think that the shareholders control the company through a board of directors appointing the CEO and others in management, but the truth is under law the equity owners are extremely limited in making the kind of company-saving decisions that they can in the US. The result is an anemic economy.

    This is a seperate issue from the French government offering to become specially involved, but is relevant to EA's ability to affect Ubisoft in the same way they would any other company in the US inwhich they owned 20% of the shares.