Following multiple rumors of Ubisoft looking for a partner to save it from the ongoing financial troubles it's in, the company has confirmed it has now found a solution with Tencent. The French video game maker is teaming up with the Chinese conglomerate to spin off multiple game IPs into a new subsidiary valued at €4 billion ($4.3 billion).
Ubisoft's three biggest franchises currently, Assassin's Creed, Far Cry, and Tom Clancy’s Rainbow Six, will be under this subsidiary following the move. The development teams involved in the projects across Montreal, Quebec City, Sherbrooke, Saguenay, Barcelona, and Sofia are all a part of the deal too.
Tencent is investing €1.16 billion into the subsidiary and in turn receiving a 25% stake in it. Ubisoft will continue to control the direction of the games and own them as the majority. Interestingly, the new subsidiary even exceeds the value of Ubisoft itself, showing just how much pull its massively popular gaming franchises have in the entertainment landscape.
Alongside the announcement, Ubisoft CEO Yves Guillemot had also sent a memo to Ubisoft employees, which Insider Gaming has managed to acquire.
"I’m pleased to share an important announcement that will mark a milestone in Ubisoft’s history," writes Guillemot in the internal memo. "Following a process to review different strategic options for Ubisoft’s future, we have just signed an exceptional agreement with one of our trusted shareholders, Tencent, with whom we have a solid relationship."
"Their €1.16 billion investment will benefit all of Ubisoft. We will be able to firmly take back control of our future and renew with the serenity needed to create the best games," added the CEO. The deal is set to be completed before 2026.
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