Ubisoft Says It Plans to Add 1,000 Workers in Montreal by 2010

Feb. 1 (Bloomberg) -- Ubisoft Entertainment SA, Europe's second-largest maker of video games, said it will double its workforce in Montreal by hiring about 1,000 people.

Paris-based Ubisoft plans to hire programmers, game designers and computer animation specialists in the city over the next five years, Martin Tremblay, who runs the company's Canadian unit, said at a press conference in Montreal today. Ubisoft picked Montreal over such cities as Shanghai, Vancouver and Orlando, Florida, co-founder Gerard Guillemot said.

Ubisoft is bolstering its presence in Canada while it works to preserve its independence after larger U.S. rival Electronic Arts Inc. bought a 19.9 percent stake in December. Ubisoft has 1,000 employees in Montreal, Canada's second most populous city, or about one-third of the company's global workforce of 2,800.

`` We think Ubisoft can create more value by remaining independent,'' Guillemot said. Electronic Arts' move has proved that ``Ubisoft has a great value, much more than people thought. It brought us numerous contacts with other large potential partners, so it means that we are in discussion with a bigger number of people.''

Video-game makers aren't the only potential partners for Ubisoft, Guillemot said.

``What we do is close to the media and the new technologies,'' he said. ``It's very much a strategic area for many industries. So a solution could simply take the shape of a partnership, without big movements of capital.''

Based on today's closing price in Paris, Ubisoft has a market value of about 550 million euros ($718 million). The shares rose 32 cents to 31.10 euros in Paris.

Montreal Investment

Ubisoft said it expects to spend about C$700 million ($566 million) on wages and new equipment by 2010 as it expands its Montreal facility.

Ubisoft's Montreal studio has developed best-selling games such as ``Tom Clancy's Splinter Cell'' and ``Prince of Persia.'' The new hires will help expand the product roster.

By 2010, Quebec's provincial government expects to give Ubisoft as much as C$52 million in grants and subsidies and an unspecified amount of tax credits, Economic Development Minister Michel Audet said at the press conference. Canada's federal government will provide C$5 million in development money.

``The taxes of Quebec were very important in the decision process to choose Montreal,'' Tremblay said. Without government money, ``we would probably be here, but certainly on a much smaller basis,'' said Guillemot, one of five brothers who created Ubisoft in 1986.

Redwood, California-based Electronic Arts is the world's biggest video game maker. Infogrames Entertainment SA, which owns a majority stake in New York-based Atari Inc., is Europe's largest maker of video-game software.

To contact the reporter for this story: Frederic Tomesco in Montreal at tomesco@bloomberg.net.

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net