By Scott Kanowsky
Investing.com -- Shares in Ubisoft Entertainment (EPA:UBIP) surged by more than 20% on Thursday on a report that tech giant Tencent is aiming to up its stake in the video game maker.
Tencent has been in touch with the French company's founders to express its interest in taking a higher stake, according to four sources familiar with the matter cited exclusively by Reuters. In 2018, it spent 66 euros per share for its current 5% stake.
Ubisoft, the firm behind hit gaming series like Assassin's Creed and Far Cry, is valued at $5.3B. It was not known how much more Tencent wants to own but the Chinese company is looking to become Ubisoft's largest shareholder, Reuters reported.
Three of the sources told Reuters that Tencent would like to buy part of the extra stake from Ubisoft's founding Guillemot family, which currently has 15% of Ubisoft.
Details of the deal are not yet finalized, Reuters said.
Tencent and Ubisoft declined to comment, while Guillemot family representatives could not be immediately reached for comment, according to Reuters.