Shenzhen-based gaming giant Tencent has invested $1.25 billion in a new Ubisoft subsidiary, securing a significant stake in the renowned French video game company. The deal values the newly formed unit at approximately €4 billion, with Tencent owning about a quarter of the business while Ubisoft retains the remaining majority.
This new subsidiary will oversee some of Ubisoft’s most successful franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. Tencent, one of the world’s largest video game companies, is expanding its global influence through this investment, further solidifying its position in the gaming industry. The company is also known for its popular digital services, including the widely used messaging platform WeChat.
“Today Ubisoft is opening a new chapter in its history,” said Yves Guillemot, Ubisoft’s co-founder and chief executive, in a statement. This deal marks a deepening partnership between the two firms, as Tencent had already been a shareholder in Ubisoft before this latest investment.
Martin Lau, President of Tencent, echoed this sentiment, stating, “We are excited to extend our longstanding partnership with Ubisoft through this investment.” With this move, Tencent becomes Ubisoft’s second-largest shareholder, holding just under a 10% stake in the company.
Ubisoft has faced several challenges in recent years, including delays in major game releases and declining sales. Its stock market value has dropped significantly due to these struggles, though a recent boost came with the launch of the much-anticipated Assassin’s Creed Shadows. The game had faced multiple delays but was eventually well received by investors.
The deal comes at a time when Ubisoft is shifting its focus to other marquee franchises, including Tom Clancy’s Ghost Recon and The Division. However, concerns persist about the company’s overall direction, particularly following the underwhelming performance of Star Wars Outlaws. Industry observers are closely watching how this partnership with Tencent will impact Ubisoft’s future strategy and financial recovery.
With this new investment, Tencent is poised to strengthen its presence in the global gaming industry while providing Ubisoft with much-needed stability to revitalize its flagship franchises.
