Gameloft chief executive Michel Guillemot is expected to resign in the wake of Vivendi’s successful hostile takeover of the French mobile game publisher, according to a Bloomberg report.
Bloomberg said that Vivendi has gained control of more than 56 percent of Gameloft’s stock in a months-long attempt to gain control of the mobile gaming pioneer, which has had a hard time in the past year. Gameloft lost money and cut more than 500 jobs in 2015, partly because the competition in mobile gaming has become so intense.
GamesBeat has asked Paris-based Gameloft for comment.
If the report is correct, Vivendi would have control of Gameloft’s board at the annual shareholder meeting on June 29. Vivendi issued a letter to the mobile game company’s employees, saying that it has hopes to leverage its impressive holdings in music, cinema, television, and online and its “expertise in supporting talent.”
“You work for a company that is already one of the most renowned and creative in the mobile games segment worldwide,” the letter stated. “We are convinced that Gameloft, with Vivendi’s backing, can be more ambitious in its growth plans. In a rapidly evolving market, your company, which needs industrial and financial backing to develop, will be able to count on our full support and commitment.”
Vivendi is also attempting take control of Ubisoft, which is run by Yves Guillemot, Michel’s brother. Vivendi owns about 18 percent of Ubisoft, a maker of blockbuster games, such as Tom Clancy’s The Division. Yves Guillemot also prefers that Ubisoft remain independent.
Earlier, the Gameloft board advised shareholders not to sell out to Vivendi, but it offered a hefty €8 ($8.92) a share.