Ubisoft announced that Tencent will be making a US$1.25 billion (~RM5.54 billion) investment in a spin-off subsidiary. As per its press statement, the Assassin’s Creed creator will hold a majority stake of the new US$4.3 billion (~RM19.1 billion) business, while the Chinese tech giant will own a quarter of it.
The new Ubisoft and Tencent subsidiary will reportedly run some of the French video game developer’s most prominent franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six.
“Today Ubisoft is opening a new chapter in its history,” said, Yves Guillemot, Co-Founder and Chief
Executive Officer. “As we accelerate the company’s transformation, this is a foundational step in changing
Ubisoft’s operating model that will enable us to be both agile and ambitious. We are focused on building
strong game ecosystems designed to become evergreen, growing high-performing brands and creating
new IPs powered by cutting-edge and emerging technologies.”
The deal is obviously welcome news for the ailing studio, given the year it’s had. The developer and publisher’s shares plummeted sharply last year, due on one hand to lacklustre sales of Star Wars Outlaws. Its shares took a hit too, although early rumours of a buyout by Tencent did help boost its share value, at the end of last year.
Ubisoft also very recently launched its latest AAA title, Assassin’s Creed Shadows. Despite being delayed twice amidst controversies in-game, the game released more or less well-polished, being one of the studio’s more solid entries to the series thus far.
“With the creation of a dedicated subsidiary that will spearhead development for three of our largest
franchises and the onboarding of Tencent as a minority investor, we are crystalizing the value of our
assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term
growth and success. With its dedicated and autonomous leadership team, it will focus on transforming
these three brands into unique ecosystems.
