Ubisoft Partners with Tencent to Create a New €4 Billion Gaming Subsidiary
In response to ongoing financial challenges, Ubisoft has officially announced a strategic partnership with Tencent. This collaboration aims to carve out various game intellectual properties (IPs) into a newly formed subsidiary, which has been valued at an impressive €4 billion (approximately $4.3 billion).
Major Franchise Inclusion
As part of this significant move, Ubisoft’s iconic franchises—including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six—will transition under the umbrella of this new entity. Development teams located in multiple cities such as Montreal, Quebec City, Sherbrooke, Saguenay, Barcelona, and Sofia will also join the initiative, ensuring their expertise contributes to the success of these brands.
Tencent’s Investment and Stake
Tencent is set to invest €1.16 billion, which will secure a 25% ownership stake in the new subsidiary. Despite Tencent’s investment, Ubisoft will maintain majority control over the subsidiary, ensuring that it retains the strategic direction and ownership of its beloved gaming franchises. This development underscores the immense value and influence of Ubisoft’s IPs within the expansive entertainment market.
Leadership Insights
In an internal memo shared with employees, Ubisoft CEO Yves Guillemot emphasized the importance of this agreement.“I’m pleased to share an important announcement that will mark a milestone in Ubisoft’s history, ”Guillemot expressed, highlighting the longstanding relationship between Ubisoft and Tencent. He further stated, “Their €1.16 billion investment will benefit all of Ubisoft, allowing us to regain control of our future and foster an environment conducive to creating exceptional games.”
Looking Ahead
The completion of this deal is anticipated before 2026, and it marks a pivotal moment not only for Ubisoft’s operational strategy but for the gaming industry at large. As both giants collaborate, the landscape of video gaming may be poised for dynamic expansion and innovation.
For additional insights, you can read more from Neowin.
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