Infogrames Could Help Ubisoft vs. EA

GamesIndustry.biz iz reporting that in a show of European solidarity publisher Infogrames may assist Ubisoft (with the blessings of the French Government) if EA attempts a hostile takeover of the Prince of Persia developer. From the article: "Speaking to news agency Reuters, Bonnell expressed his hope that Ubisoft will remain independent - and rubbished EA's claim that its recent purchase of almost 20 per cent of the firm's stock was merely an investment." Further details on Greg Costikyan's Blog. All this is follow up to year-end shenanigans from EA.

Comments

Funny...

[Evan Meakyl]

I read this morning here (in french, sorry!) that it was Vivendi Universal Games which was supposed to help Ubisoft....


But "In /. I trust ..." :D

Re:Funny...

[spac3manspiff]

The French industry of the video game tightens the elbows vis-a-vis with the attacker
PARIS (AFP),
05-01-2005

The French industry of the video game, whose brittleness burst at the great day with the intrusion of the American giant Electronic Arts in the capital of Ubisoft, is mobilized to preserve a part of its independence, which could pass by a bringing together between Vivendi Universal Games and Ubisoft.

The financial daily newspaper Agefi launched this assumption Wednesday, by affirming that the group of media Vivendi Universal, present in the plays vidéos with its division CONSIDERING Games (VUG), would have had preliminary contacts with Ubisoft.

Questioned, the groups concerned refused any comment. But the possibility of an increased defense of Ubisoft, which in spite of its smaller size is the French group of video games in less bad form, had the merit to make rebound the action of the Breton group, which gained 9,68% to 27,20 euros with 13h40.

Electronic Arts had announced on December 20 to have bought 19,9% of the capital of Ubisoft with Talpa Beheer, company controlled by John De Mol, cofounder of the house of Endemol production.

With with dimensions of Ubisoft, number two European of the sector, the French leader Infogrames fights to make accept a complicated financial rescue plan, while VUG is an important hearth of losses for Vivendi. During the first three quarters 2004, VUG showed a trading loss of 185 million euros, on a sales turnover of 211 million euros.

"Since years, I repeat that the French editors of video games are threatened of disappearance and their difficulties were amplified by the recent explosion of the cost of the licences and the development of the products", indicated to AFP Jean-Claude Larue, president of the SELL (Trade union of the software publishers of leisure).

The important video games represent today for the editors of the investments of more than 50 million euros, between the purchase of the licences (20 million euros), the increasingly complex work of writing of the software for several platforms (consoles and computers) and of the budgets marketing which can reach 20 to 30 million euros.

Vis-a-vis with countries like China or Canada, where the creation of plays is less expensive or is subsidized, French industry obtained government Raffarin a clear assertion of her will of support, in particular at the time of the proclamation by the Prime Minister in Futuroscope in April 2004 of a "passenger waybill" for the sector.

But principal promised measurement, a tax credit making it possible to lower the costs of the investments in France, still did not come into effect, for lack of agreement of Brussels.

One of the most former editors of plays of the hexagon, Titus Interactive, which fought since years for its survival, announced at the beginning of week its setting in bankruptcy.

As, a regrouping of the French groups it is planned to prevent as the world leader Electronic Arts, whose prosperity contrasts with the difficulties of good of other American groups, comes to make his market with leisure among the French editors.

The owner of the group Vivendi Jean-Rene Fourtou affirmed on several occasions that after having planned to separate from his division video games, it had decided to restructure it, and to even resort to acquisitions for better rectifying it from the point of view of a future transfer or an introduction out of purse.

But VUG, which in the past had not known to exploit the great popularity acquired by its educational plays Adi and Adibou, does not gain today the successes discounted over its last great plays, Half Life 2 and Warcraft, according to professionals'.

Whereas the Guillemot brothers, who controlent 17% of Ubisoft, continue to try to rejoin other shareholders, like the Case of the Deposits, to concrete their minority of control, certain analysts of the sector doubted Wednesday that the best means of consolidating Ubisoft is to make him absorb new hearths of losses.

Re:I don't understand

[UWC]

I think it might be more that EA has been reviled of late for apparent monopolistic ambitions (and assumed overcommercialization, common-denominator pandering, and stifling of creativity as a result--all unproven but potentially valid fears) and poor treatment of its direct employees. The rumored takeover plans for Ubisoft I think are opposed out of distrust for EA and a feeling that they might not, at the moment, deserve the increased revenues that the acqusition of another major developer would bring. That and the fact that Ubisoft is one of few commercially known studios still operating outside of the umbrella of the likes of EA or Vivendi-Universal.

Re:That name..

[El Cabri]

-grames is the French version of a common (latin?) suffix indicating something written, or a record. Program, Sonogram, Grammar, (Deutsch) Grammophon, etc.