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Why Gameloft’s Founders Reluctantly Tendered Their Shares to Vivendi

After Vivendi secured majority control of Gameloft in 2016, the founding Guillemot family reluctantly tendered most of its shares, citing deep strategic disagreement.
From TheFinanceBase Team2 min to read
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Gameloft’s founding Guillemot family gave up trying to block Vivendi’s takeover in June 2016, agreeing to tender most of its shares after Vivendi had secured majority control. The family said it was deeply at odds with Vivendi over strategy and could not expect value creation under the new majority shareholder. Vivendi later reported owning more than 95% of Gameloft and pursued a squeeze-out of the remaining shareholders.

Why the Guillemot family changed course

The family’s decision followed months of resistance. In October 2015, Gameloft said it intended to remain independent after Vivendi invested in the company. In March 2016, Gameloft said it had filed a complaint with the Paris Court of Appeal concerning the clearance decision related to Vivendi’s takeover bid.

By June, however, Vivendi had won majority control through its public offer. On June 7, Reuters reported that the Guillemots would reluctantly tender most of their shares. Reuters put the family’s holding at 22.43% of Gameloft’s shares as of April 14, 2016.

Christian Guillemot framed the decision as a response to strategic disagreement: the family said it could not expect value creation from a majority shareholder with whom it was deeply at odds. That was the family’s assessment, not an independent finding about Vivendi’s strategy or Gameloft’s future prospects.

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How Vivendi took control of Gameloft

Date Stage Reported ownership or action
October 15, 2015 Gameloft’s stated position Gameloft said it intended to remain independent.
February 18, 2016 Proposed public offer Vivendi’s 2015 annual report says it filed a proposed offer at €6 per share after crossing the 30% threshold.
May 31, 2016 Preliminary offer results Vivendi reported 61.71% of share capital and at least 55.61% of voting rights.
June 7, 2016 Founders’ decision The Guillemot family said it would reluctantly tender most of its holdings; Reuters reported a 22.43% family stake as of April 14.
June 20, 2016 Results after offer reopened June 2–15 Vivendi reported 95.94% of share capital and 95.77% of voting rights.
July 2016 Squeeze-out and delisting Vivendi said it had requested a mandatory squeeze-out. Remaining shares were scheduled to be transferred for €8 cash each, and Gameloft was to be delisted on July 26.

The figures describe distinct points in the transaction, not interchangeable measures: Vivendi’s May preliminary result showed a majority, while the higher percentages came after the offer reopened. The July squeeze-out addressed shares that remained after that process.

What happened to shareholders who did not tender?

In July 2016, Vivendi announced that it had requested a mandatory squeeze-out, referring to an AMF notice. The remaining shares were scheduled to be transferred for €8 in cash per share, and Gameloft was set to be delisted on July 26. This completed the move from a contested public offer to full control through the offer and subsequent squeeze-out process.

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What the takeover record does—and does not—show

The record establishes that Vivendi gained control of Gameloft and that the Guillemot family reluctantly tendered most of its stake after losing the contest for control. It does not establish what effect the takeover had on Gameloft’s later games or business performance. Nor should the family’s stated concern about value creation be read as an independently verified forecast.

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