PUBG maker Tencent invests $1.25B in Assassin's Creed game developer
What's the story
Chinese tech giant Tencent has pumped $1.25 billion into a spin-off of Ubisoft, the famous creator of the Assassin's Creed video games. The Shenzhen-based company will get an approximately 25% stake in the new business, while Ubisoft will own the rest. The subsidiary, which is worth around $4 billion, will take care of some of Ubisoft's most popular franchises, including Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six.
Strategic investment
Tencent's acquisition strengthens partnership with Ubisoft
Tencent, the leading video game developer and internet service provider famous for PUBG, has now become Ubisoft's second-largest shareholder with a stake of just under 10%. "Today Ubisoft is opening a new chapter in its history," said Yves Guillemot, co-founder and CEO of Ubisoft. The investment is an extension of Tencent's long-standing partnership with the French gaming giant.
Strategic shift
Ubisoft's focus shifts to other franchises post-investment
After this major investment, Ubisoft will focus on its other big titles such as Tom Clancy's Ghost Recon and The Division. Despite a recent spike in stock market value with the launch of Assassin's Creed Shadows, Ubisoft has struggled with delays in new game releases and falling sales. Shannon Liao, a video games journalist, told BBC that "Ubisoft has all these great games...that recently haven't delivered so much for fans."
Franchise success
Assassin's Creed series has sold over 200 million copies
The Assassin's Creed series, which is a part of the new subsidiary, has sold over 200 million copies globally. According to a Ubisoft earnings report from last year, it brought in roughly €4 billion in revenue over a decade leading up to 2024. This blockbuster franchise will likely contribute significantly to the future growth and profitability of the newly formed subsidiary.