Chinese tech giant Tencent has made a significant move in the gaming industry with a €1.2 billion (about $1.25 billion) investment in a spin-off from Ubisoft, the famous developer behind the Assassin’s Creed franchise. This investment allows Tencent to hold roughly 25% ownership in the new subsidiary, while Ubisoft retains the majority stake. The new unit is valued at around €4 billion and will manage some of Ubisoft’s top franchises, such as Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six.
Tencent, based in Shenzhen, is recognized as one of the largest video game developers globally. It’s also popular for its internet services, including the widely used messaging app WeChat. Martin Lau, Tencent’s President, expressed excitement about this expanded partnership, stating it surprises many that their collaboration has grown.
Ubisoft, which has faced challenges lately, hopes to turn things around with this investment. The company has seen its stock prices drop due to delays in game releases and lower sales. However, there’s been a recent jump in stock value following the launch of the latest Assassin’s Creed title, Shadows, which had faced multiple delays.
Experts in the gaming industry share similar sentiments. Video game journalist Shannon Liao pointed out that while Ubisoft possesses beloved franchises, recent titles haven’t met fan expectations. This makes the company’s assets appealing to Tencent, which could leverage these popular games.
The Assassin’s Creed series itself has been a massive success, selling over 200 million copies globally. In fact, a Ubisoft report stated that the franchise generated around €4 billion in revenue between 2014 and 2024. This strong revenue potential reflects the ongoing interest in these well-established gaming franchises.
Historically, Tencent has been strategic in its investments in video game companies. With this latest move, the company continues to build its influence in the gaming market, tapping into the potential of beloved franchises while helping Ubisoft regain its footing. As social media conversations around these developments intensify, many fans are left curious about the future of their favorite games under this new partnership.
For more insights, you can check out Ubisoft’s press release on this significant investment.
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