Electronic Arts (NASDAQ : ERTS) has announced that the company has sold the 14.8% stake that it held with France based game development company Ubisoft Entertainment. No details regarding the purchase value was revealed. Also, the buyer of these shares is still unknown.
Speaking about the sale, a Ubisoft Entertainment (NASDAQ : UBI) spokesperson said,
“Electronic Arts informed us that it was selling its share in Ubisoft. This is good news for Ubisoft which regains its independence, although Electronic Arts has always supported our strategy.”
Though the details about the buyer is unknown, Ubisoft’s statements about regaining “independence” could suggest that these were share buybacks. The company founders – the Guillermot family owns close to 11.26% of shares and had 20% voting rights in the company. With the departure of the largest stakeholder, the founding family is expected to gain more say in the board’s decision making process.
Following the announcement, the shares of both Electronic Arts and Ubisoft showed modest declines. The after-hours value of Electronic Arts was down 0.91% to end at 15.35. Meanwhile, Ubisoft stocks dropped 1.09%.