Ubisoft's failures are multiplying. Star Wars Outlaws, Avatar: Frontiers of Pandora, Skull and Bones, XDefiant, repeated commercial failures that have pushed the publisher to its limits. Since 2021, its stock has been plummeting, and its investors are waiting for a reaction from the Guillemot family. It has happened. As planned, Ubisoft is partnering with Tencent.
A new Ubisoft subsidiary dedicated to its stars
Tencent is definitely getting more and more involved in Ubisoft's affairs. In September 2022, Ubisoft formalized Tencent's economic stake in Guillemot Brothers Limited, amounting to 49.9% of the capital and 5% of the voting rights. An investment of €300 million (€200 million in share acquisitions and €100 million in capital increases), which was accompanied by a long-term loan, without collateral, to enable it to "refinance its debt and provide additional financial resources that can be used to increase Ubisoft's capital." However, Tencent does not sit on the board of directors and has no right of approval or operational veto.
A protection put in place by Ubisoft, which is only seeking a financial security. And after this first helping hand, the French publisher is now reiterating with the creation of a subsidiary in which Tencent will invest a whopping €1.16 billion, for around 25%. A subsidiary whose official name has not yet been shared, but which will focus on the group's most popular licenses: Assassin's Creed, Far Cry and Rainbow Six. A new partnership that does not come without conditions, with Ubisoft remaining the majority shareholder of this subsidiary, without the risk of losing this privileged status. for the next two years.
Tencent, for its part, will not be able to increase its stake for five years, unless Ubisoft ends up losing the majority at the end of the two years. A new collaboration between the Chinese conglomerate and the largest French video game publisher which must be finalized before the end of the year. It remains to be seen what will come of this "new chapter" for Ubisoft. Especially since this advancement of Tencent at Ubisoft was forced by the bad decisions of the publisher, who does not seem to want to change its way of operating.
Let's hope that with previous commercial failures, Ubisoft has learned. Assassin's Creed Shadows is a critical and commercial success, with more than 3 million players already registered. We know that two other installments, Hexe and Invictus, are already in development, as well as an Assassin's Creed mobile game. Other projects from the publisher include Tom Clancy's Splinter Cell, The Division 3, a Rayman game, and the all-too-famous Beyond Good and Evil 2, announced with great fanfare in 2017 and still in development at Ubisoft Montpellier.
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