Ubisoft Secures €1.2 Billion Investment from Tencent for Strategic Growth
Tencent, the Chinese technology giant, has invested €1.2 billion in Ubisoft, acquiring a 25% stake in a new subsidiary that will manage key franchises, including Assassin’s Creed. This collaboration is aimed at revitalizing Ubisoft’s offerings amidst recent challenges in the gaming market.
Ubisoft, the esteemed developer behind the Assassin’s Creed franchise, has secured a substantial investment of €1.2 billion ($1.25 billion) from Tencent, a prominent Chinese technology company. As a result of this investment, Tencent will acquire approximately 25% ownership of a newly established subsidiary valued at about €4 billion, while Ubisoft retains the majority stake.
The newly formed unit will manage some of Ubisoft’s most significant franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. Tencent, recognized as one of the leading video game developers globally, is also famous for its internet services, such as the extensive messaging platform WeChat.
Yves Guillemot, co-founder and CEO of Ubisoft, remarked, “Today Ubisoft is opening a new chapter in its history.” With this investment, Tencent becomes Ubisoft’s second-largest shareholder, holding a stake slightly below 10%. Martin Lau, President of Tencent, expressed enthusiasm about strengthening their longstanding partnership with Ubisoft through this new investment.
Ubisoft plans to redirect its focus towards its other prominent titles, including Tom Clancy’s Ghost Recon and The Division. Despite the stock market turmoil resulting from delays in game launches and decreased sales, the release of the much-anticipated Assassin’s Creed Shadows has provided a momentary boost to its stock value.
The gaming industry has seen mixed results for Ubisoft, with the disappointing performance of titles like Star Wars Outlaws raising questions regarding its management. Video games journalist Shannon Liao noted, “Ubisoft has all these great games, like Assassin’s Creed, that it’s known for that recently haven’t delivered so much for fans,” emphasizing the lucrative opportunity this poses for Tencent. The Assassin’s Creed series has sold over 200 million copies globally, generating €4 billion in revenue over the last decade, as reported by Ubisoft.
The substantial €1.2 billion investment from Tencent marks a pivotal moment for Ubisoft, positioning the Chinese tech giant as a significant player in the management of popular gaming franchises. The collaboration aims to revitalize Ubisoft’s portfolio, especially considering recent challenges in the gaming market. As Tencent forges ahead, the continued success of beloved games like Assassin’s Creed remains a focal point for both companies.
Original Source: www.bbc.com
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