Meanwhile, Ubisoft, the globe-trotting developer behind the popular assortment of Assassin’s Creed video games is entering an interesting new phase. This transition follows a heavy investment from Chinese interest Tencent. The Chinese tech giant is pumping €1.2 billion into a new deal for a Ubisoft spin-off now valued at around €4 billion. This acquisition makes Tencent Ubisoft’s second-largest shareholder. Tencent becomes Tencent’s majority owner, now with ~ 25 % of the new business. We have always assumed that Ubisoft would own 75 % of this new business.
Yet Ubisoft now finds itself at a crossroads as it contends with a sharp drop in its stock market valuation. This new strategic investment comes at a critical time for the company. The company has struggled with new game launch delays and has suffered with declining sales. But even with these obstacles to overcome, Yves Guillemot, Ubisoft’s co-founder and chief executive, is upbeat about what’s to come.
“Today Ubisoft is opening a new chapter in its history,” – Yves Guillemot, Ubisoft’s co-founder and chief executive
Tencent’s deepening investment gives cash-strapped Ubisoft a better shot at survival. It promises to deepen the collaboration going forward. Martin Lau, President of Tencent, shared his excitement about the collaboration’s possible benefits.
“We are excited to extend our longstanding partnership with Ubisoft through this investment,” – Martin Lau, President of Tencent
In addition to the financial infusion, Ubisoft plans to concentrate on its other marquee titles such as Tom Clancy’s Ghost Recon and The Division. This sharpened focus is intended to strengthen the company’s pipeline while navigating through continued headwinds.
The investment comes at a high point of controversy for Ubisoft. The company is currently addressing a number of sexual misconduct claims against former executives. These allegations have only increased their burden in negative press. It’s now sprinting to rehabilitate its image and claw back its place in the marketplace.