French publisher Ubisoft announced today that the company has sold its stake in the leading mobile developer/publisher Gameloft. On July 12, Ubisoft sold its 13,367,923 shares in Gameloft (which represented 18.89 percent of the company's capital) to Calyon, Cr�dit Agricole Group's Corporate and Investment Bank. The sale price was �6.08 per share, which was based on Gameloft's closing share price on July 12, meaning the total amount came to roughly $112 million.

"The video game market offers numerous internal and external growth opportunities. We have therefore decided to sell our stake in Gameloft in order to focus on Ubisoft's expansion and strengthen our ability to seize all such growth opportunities. Following this sale Ubisoft and Gameloft will continue their productive collaboration at a purely operational level, particularly concerning the utilization of Ubisoft's brands on mobile phones," commented Yves Guillemot, chief executive officer of Ubisoft.

In addition to the sale, also entered into an equity swap agreement with Calyon. The terms state that Calyon has 24 months to sell the newly acquired Gameloft shares on the market and any and all changes in the Gameloft share price compared with Calyon's purchase price of �6.08 will be recorded in full by Ubisoft. Ubisoft noted that the transaction "will therefore only impact Ubisoft's income statement and generate cash inflows when Calyon sells the Gameloft shares on the market. At that time, Ubisoft will recognize the difference between the value of the shares sold by Calyon and the value of the investment in Ubisoft's balance sheet (�34 million at March 31, 2007, or an average value of �2.54 per share) under 'gain/loss from operations of discontinued business segment.' "

"We opted for an equity swap solution as we are confident in Gameloft's capacity for growth," said Alain Martinez, chief financial officer of Ubisoft. "Selecting this approach enables us to inform the market of our exit strategy and to stagger the market placement of the Gameloft shares in order to continue to benefit from the company's development potential over the next two years."