Ubisoft Forms New Gaming Subsidiary With High-Profile IPs; Tencent Acquires 25% Stake In It
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Assassin’s Creed, Far Cry, and Rainbow Six have a new home. Ubisoft announced today that it has started a brand-new non-public subsidiary that will now be in charge of some of its biggest franchises.
Ubisoft has partnered with Tencent on the new company, which will own 25% of it.
As the Future of Ubisoft Continues to Loom, the Publisher Teams Up With Tencent for a New Company
The rumors are true, as Ubisoft announced today that they have started a new subsidiary with Tencent. While details are still light, Ubisoft revealed that the newly formed company is being set up to house the mentioned IPs and bring the development teams over. They valued the new unit at a whopping $4.3 billion, with Tencent also investing heavily in it, acquiring a 25% stake.
Ubisoft’s CEO Yves Guillemot, had this to share about the news:
“Today Ubisoft is opening a new chapter in its history. This is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious.”
Of course, this brings up many questions, such as what does that mean for other franchises such as Splinter Cell and Prince of Persia? Only Ubisoft knows, though it has brought much talk and speculation online that Ubisoft may be gearing up for a potential mass layoff.
Previous rumors stated that the reasoning behind this was to increase the value of Ubisoft, though it’s hard to say at this moment if it has. The company’s stocks jumped nearly 13% today, though given how low the prices were, such influxes could be due to several reasons, as their stocks have seen similar increases and decreases over the last year.
It’s also important to note that this isn’t a response to the performance of Assassin’s Creed Shadows, which, according to Ubisoft, has attracted over three million players since its launch. These types of decisions take months, especially when another party, such as Tencent, is involved.
We’ll continue to monitor the situation as things develop.
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