Ubisoft Creates Subsidiary with €1.16 Billion Investment from Tencent
Ubisoft has announced it has created a subsidiary company that will focus on its Rainbow Six, Far Cry, and Assassin’s Creed franchises, with Chinese gaming giant Tencent investing €1.16 billion for a 25% stake in the carveout.
Tencent has invested €1.16 billion in a new Ubisoft subsidairy, which will focus on the more popular and most profitable franchises, Assassin’s Creed, Rainbow Six, and Far Cry.
In a statement, Ubisoft says the new spinoff company will work to “expand multiplayer offerings with increased frequency of content release” and enhance the “quality of narrative solo experiences.”
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What the Ubisoft-Tencent Deal Means
It has been no secret that Ubisoft has struggled in the last couple of years, with its share prices dropping after multiple failed releases and delays. Ubisoft hopes the latest investment from Tencent will boost “creative capacities” and “drive further increases in quality” experiences.
With Tencent’s €1.16 billion investment, the new subsidiary is valued at roughly €4 billion, and Ubisoft hopes it will reinforce its balance sheet while enabling the company to ” become a more agile organization and unleash the full creative potential of its teams.”
How This Affects Ubisoft’s Strategy
Last year, it was revealed Tencent, who owns a 10% stake in Ubisoft, was considering buying the French developer and publisher. In an ever-evolving industry, Ubisoft co-founder called it a “new chapter” for the company as it looks to stay “agile and ambitious.”
The recent release of Assassin’s Creed Shadows on March 20, which has sold over 3 million copies and become the second best-selling day-one release in the franchise’s history, reinforces Ubisoft’s plans to focus on its more successful IPs for both single-player and multiplayer experiences as it looks to build confidence with its investors and fans.
Concerns Over Creative Independence
While investment can help sustain a company and open new possibilities, fans may wonder who will have an overriding influence on creative direction. Tencent’s stake in the subsidiary is 25%, suggesting Ubisoft will maintain IP control.
For the time being, at least, Ubisoft has strengthened its position, and with Tencent’s help, its most popular franchises will continue to expand with both multiplayer and single-player experiences.
Conclusion
Ubisoft has created a new subsidiary, and with help from a €1.16 billion investment from Tencent, will focus on developing high-quality experiences for its core IPs, Far Cry, Rainbow Six, and Assassin’s Creed. What do you think about the new partnership? Share your thoughts in the comments.
Fueled by a passion for gaming and the ever-evolving world of gaming news, Daniel loves connecting with seasoned and new players to bring games to life on the page, exploring their narratives and gaming trends. A self-published fiction and fantasy author, Daniel has nearly 20 years of experience writing gaming news and a love for storytelling that drives his enthusiasm to deliver breaking news, in-depth analysis, and industry innovations. You will find him in-game as "Windfell."
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