Gameloft’s response to Vivendi’s recent takeover bid is quite interesting

Gameloft’s response to Vivendi’s recent takeover bid is quite interesting

Back in February 2016 we reported on Vivendi who were essentially forced under French law to create a takeover invest in Gameloft after acquiring a large stake in Gameloft after their last share buy. This all began in October 2015, which is when Vivdeni began buying up chunks of Gameloft’s shares after netting around a 30% stake in Gameloft, and because of Vivdeni now having a 30% stake in Gameloft, under French law what this means is there is a mandatory takeover offer to create plus they did.

However, just because Vivendi makes the offer, it doesn’t mean share holders need to sell their shares of anything like this. But, purchasing a large chunk of shares at a rapid pace does look like a hostile takeover type of event. Gameloft made their position overall thing pretty clear from the start, which is that they are not for that takeover on any level. Today Gameloft released a press release/statement about the whole ordeal, tearing in to the cope with numerous reasons why it is bad.

If you won’t want to read the statement, we have broken down the key reasons for you. First, the offer undercuts the current value of Gameloft shares by around 1.4%, which may not appear to be a lot, but it really is. Gameloft management also is arguing that any synergies Vivendi is suggesting that will occur post-takeover are illusory, which in both the short term and long, the sale will actively hurt Gameloft.

Gameloft’s Order & Chaos 2

Actually, according to Gameloft, Vivendi’s media clients are mainly rooted in pay TV and music right now. Vivendi can’t offer Gameloft anything worthwhile in the telecom or internet space too. In addition, Gameloft attacked Vivendi’s control over Activision, as most gamers know they once owned Activision before they forget about them. Which was a whole mess in itself really, and Gameloft wasn’t afraid to suggest that fact out either.

“Vivendi does not have any specific know-how within the video game industry since the sale of Activision. The recent sale of Activision by Vivendi illustrates its lack of strategic vision in the long run within the gaming industry. Moreover, the unfavorable trend of revenues and profitability of Activision over the last years where the audience occured by Vivendi illustrates its lack of edcuation of worth creation levers within the gaming industry.” – Gameloft Management

Basically, they are saying Vivendi has no idea what they’re doing in regards to the video game industry. To wrap some misconception on which Gameloft thinks of the deal, which is an exciting around big fat hell no, and even worry about what it will do using the current partnerships Gameloft has with other companies:

Gameloft has revealed its ability to generate cash while pursuing its organic development To conclude, the Board of Directors considers unanimously the offer which is initiated by Vivendi doesn’t have strategic interest for Gameloft and also the contemplated partnership won’t create substantial synergies for Gameloft shareholders nor accelerate the commercial project of the company.

The whole statement is interesting to read, which can be found below or over in our PR section here. What exactly do you think about all of this? Tell us within the comments below.

Related Article: Vivendi trying to dominate Gameloft