Michelle ThompsonChinese tech giant Tencent has invested €1.2bn ($1.25bn) in a spin-off of Ubisoft, the developer behind Assassin’s Creed.
Based in Shenzhen, Tencent will hold about 25% of the new entity, while Ubisoft retains the remaining stake. The subsidiary, valued at approximately €4bn, will oversee major Ubisoft franchises such as Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six.
As one of the world’s largest video game developers, Tencent is also known for its digital services, including the widely used messaging platform WeChat. Ubisoft co-founder and CEO Yves Guillemot described the move as a significant step in the company’s evolution.
With this investment, Tencent becomes Ubisoft’s second-largest shareholder, holding just under a 10% stake. Tencent’s President, Martin Lau, expressed enthusiasm about strengthening the long-standing collaboration between the two firms.
Ubisoft now plans to focus on other key franchises like Tom Clancy’s Ghost Recon and The Division. The company has faced declining market value in recent years due to game launch delays and weak sales.
Despite these challenges, Ubisoft’s stock saw a recent boost following the announcement of a new Assassin’s Creed installment. However, the anticipated Assassin’s Creed Shadows had experienced multiple delays, and the underwhelming performance of Star Wars Outlaws added to concerns about the company’s direction.
Additionally, Ubisoft has been impacted by misconduct allegations involving former executives.
