Tencent Invests $1.25 Billion in Ubisoft Spin-Off

 

Tencent Invests $1.25 Billion

Chinese technology giant Tencent has invested €1.2 billion ($1.25 billion; £1 billion) in a spin-off from Ubisoft, the renowned developer behind the Assassin's Creed video game series. The deal grants Tencent a 25% stake in the new Ubisoft subsidiary, which is valued at approximately €4 billion. Ubisoft will retain the remaining ownership of the new entity, which will oversee some of its most popular franchises, including Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six.

Tencent, one of the world’s largest video game developers and the company behind the widely used messaging app WeChat, has now become Ubisoft’s second-largest shareholder, with a stake just under 10%. The Chinese firm’s latest investment strengthens its long-standing relationship with the French gaming giant.

Ubisoft Looks to Turn the Page Amid Market Challenges

Ubisoft has struggled in recent years due to delays in game launches and declining sales, leading to a sharp drop in its stock market value. However, the recent launch of Assassin’s Creed Shadows has provided a much-needed boost to investor confidence.

Despite this, the company has faced setbacks, including the underwhelming performance of Star Wars Outlaws and concerns about its management strategies. As a result, Ubisoft is now shifting its focus to other major titles such as Tom Clancy’s Ghost Recon and The Division.

Ubisoft co-founder and CEO Yves Guillemot welcomed the new investment, stating, "Today Ubisoft is opening a new chapter in its history." Tencent President Martin Lau also expressed enthusiasm, saying, "We are excited to extend our longstanding partnership with Ubisoft through this investment."

Tencent Expands Its Presence in Global Gaming

Tencent’s latest move signals its continued expansion into the global gaming market. The Chinese company has made significant investments in Western gaming firms in recent years, including Epic Games (Fortnite), Riot Games (League of Legends), and Activision Blizzard (Call of Duty).

Industry experts suggest that this investment presents a major opportunity for Tencent to leverage Ubisoft’s iconic franchises and expand its influence in international gaming markets.

The Assassin’s Creed franchise alone has sold over 200 million copies worldwide and has generated approximately €4 billion in revenue over the past decade, according to a 2024 Ubisoft earnings report.

With Tencent’s backing, Ubisoft may be positioning itself for a stronger comeback, leveraging its most beloved gaming franchises to regain its competitive edge.