Ubisoft has sold 25% of its company to Tencent in a $1.3 billion deal that will see the Chinese gaming giant form a new subsidiary and have control over popular licenses like Rainbow Six, Assassin’s Creed, and Far Cry.
The deal might have only cost Tencent $1.3 billion, but in fact, it is valued at $4.3 billion if you take into account the assets and licenses involved in the agreement.
Ubisoft says the new subsidiary will include teams that currently work on these existing franchises as well as people involved in previous catalogue titles. By the sound of things, it gives Tencent free reign to work on new and existing Ubisoft games and call the shots when it comes to pitching ideas, hiring staff, and deciding on game direction.
In a statement, Ubisoft says the new path forwards only means positive things for the company. It will allow teams to work on new narrative solo experiences as well as expand multiplayer offerings with increased frequency of content release.
The deal between Ubisoft and Tencent is expected to close this year, so we will likely see more from the partnership in the year ahead. CEO Yves Guillemot says in a press release that the creation of this new partnership will spearhead development of three of the largest franchises at the company.
“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. 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 creatingnew IPs powered by cutting-edge and emerging technologies.”
Ubisoft has been looking into changing things up at the company following a year of lacklustre game sales. Apart from Assassin’s Creed Shadows, which just reached 3 million players in a week, Ubisoft’s previous releases in 2023/2024 didn’t perform as expected. The company has been in the spotlight for poor sales and lost revenue as a result of game sales “not reaching expectations”. These include Skull and Bones, Star Wars Outlaws, and Prince of Persia.
Source: Ubisoft
