Key Takeaways
1. Ubisoft’s new game, Assassin’s Creed Shadows, has surpassed 3 million players, highlighting its success.
2. Tencent is investing €1.16 billion for a 25% stake in a new subsidiary that will focus on Ubisoft’s top franchises: Assassin’s Creed, Tom Clancy’s Rainbow Six, and Far Cry.
3. Ubisoft will maintain control and licensing rights in the new subsidiary, which includes studios in various global locations.
4. The investment aims to enhance game development speed, reduce net debt, and promote growth for the franchises involved.
5. There is uncertainty about how the deal will impact Ubisoft employees, but leadership is committed to open communication during the transition.
Ubisoft has recently celebrated a significant achievement with its newest game, Assassin’s Creed Shadows, surpassing 3 million players, though specific sales numbers haven’t been shared. Following this milestone, Ubisoft revealed plans to create a new subsidiary that will encompass its top three franchises: Assassin’s Creed, Tom Clancy’s Rainbow Six, and Far Cry. Tencent is set to acquire a 25% stake in this venture.
Tencent’s Investment
As per the announcement, Tencent will inject €1.16 billion into the new subsidiary, which currently holds an enterprise value of approximately €4 billion. Yves Guillemot, Ubisoft’s Co-founder and CEO, described this agreement as a “foundational step” aimed at speeding up game development, cutting down the company’s consolidated net debt, and promoting growth for these franchises.
Structure of the New Subsidiary
While Tencent will hold a 25% share of the new entity, Ubisoft will maintain control, consolidation, and licensing rights. The studios involved in this new structure include locations in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, along with their existing and upcoming games and back-catalogs.
Guillemot also mentioned,
“We are dedicated to creating a sharper, more focused organization where skilled teams will elevate our brands, foster the growth of new franchises, and spearhead innovation in next-gen technologies and services. Our aim is to provide enriching, memorable games that not only meet but exceed players’ expectations while delivering superior value for our shareholders and other stakeholders.”
Future Implications for Employees
Tencent’s participation in Ubisoft’s strategy isn’t surprising, especially considering the Chinese technology giant was rumored to be interested in buying out Ubisoft’s entire stake last year when Ubisoft’s market value plummeted to €1.7 billion after a significant drop in stock prices due to the poorly received Star Wars Outlaws. Following this latest news, Ubisoft’s shares traded in the US rose by 20%, according to Bloomberg.
However, how this deal will affect staff at the various studios remains uncertain. Insider Gaming obtained an internal message from Ubisoft’s Chief Studios and Portfolio Officer, Marie-Sophie de Waubert, which stated,
“…Naturally, this brings uncertainty and questions. At this moment, we might not have all the specific answers, but we are devoted to communicating with you openly and frequently. Supporting you during this transition is the highest priority for both your local and global leadership teams. Please feel free to reach out to them and stay tuned locally; traditional or special ‘studio times’ will also serve as good platforms to keep you informed and address your inquiries.”
Only time will tell how effectively this new strategy will enable quicker and higher-quality releases for these beloved franchises.
Buy Assassin’s Creed Shadows Limited Edition for PS5 and Xbox Series X on Amazon
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