Tencent Invests €1.16 Billion in Ubisoft’s New Subsidiary
Ubisoft has partnered with Chinese tech giant Tencent to establish a new subsidiary, valued at $4.3 billion, which will manage major franchises like Assassin’s Creed, Far Cry, and Rainbow Six. Tencent will acquire a 25% stake in the subsidiary through a €1.16 billion investment.
A New Era for Ubisoft
Ubisoft CEO Yves Guillemot called this move a “fundamental step” in transforming the company’s operational model, stating, “Ubisoft is opening a new chapter in its history today. This step will enable us to remain both agile and ambitious.”
The subsidiary will not only oversee existing IPs but also manage upcoming game developments. Ubisoft plans to use the proceeds to reduce debt and invest in other projects.
Details of the New Subsidiary
The subsidiary will retain rights to Ubisoft’s flagship franchises, including:
- Assassin’s Creed
- Far Cry
- Rainbow Six
- Ghost Recon
- The Division
- The Crew
Ubisoft’s Struggles and Tencent’s Strategic Play
Ubisoft has faced financial challenges in recent years, exacerbated by the underperformance of Star Wars Outlaws and the abrupt shutdown of XDefiant within a year of launch.
A Ray of Hope: Assassin’s Creed Shadows
Assassin’s Creed Shadows, released last week, was seen as Ubisoft’s potential turnaround title. Despite mixed reviews, the company announced the game has already attracted 3 million players, signaling a possible rebound.
Financial and Strategic Implications
The Tencent deal allows Ubisoft to stabilize its finances while retaining creative control over its IPs. With Tencent’s backing, Ubisoft aims to accelerate development of new titles and expand its footprint in the competitive gaming market.
Stay tuned for updates on Ubisoft’s evolving strategy and Tencent’s growing influence in the global gaming industry.