Chinese technology giant Tencent invests $1.25 billion in Ubisoft, valuing the French video game developer at €4 billion, as the company seeks to revitalize its business and capitalize on the popularity of its beloved franchises.
Tencent has made a significant investment in Ubisoft, the renowned video game developer behind popular franchises like ‘Assassin’s Creed‘ , Far Cry, and Tom Clancy’s Rainbow Six. The €1.2 billion ($1.25 billion; £1 billion) investment will give Tencent a quarter stake in the new business, valuing it at around €4 billion.
Ubisoft is a French multinational video game developer and publisher founded in 1986 by five brothers, Claude, Michel, Yves, Gérard, and Christian Guillemot.
The company's early success came with the release of 'Beyond Good & Evil' (2003) and 'Prince of Persia: The Sands of Time' (2003).
Ubisoft expanded its portfolio with popular franchises like 'Assassin's Creed', 'Far Cry', and 'Tom Clancy's Ghost Recon'.
Today, Ubisoft is one of the world's leading game developers, employing over 20,000 staff worldwide.
Its headquarters are located in Montreuil, France.
Tencent, one of the world’s largest video game developers, is also known for its internet-based services, including the popular messaging app WeChat. This partnership marks an extension of their longstanding relationship with Ubisoft, as Martin Lau, President of Tencent, expressed excitement about investing in the French firm. Yves Guillemot, Ubisoft’s co-founder and chief executive, stated that this investment represents a new chapter in the company’s history.
Tencent is a Chinese multinational conglomerate founded in 1998 by Pony Ma and his team.
The company's primary business focuses on technology, entertainment, and e-commerce.
Tencent's flagship products include WeChat, a widely used messaging app with over 1 billion monthly active users, and QQ, another popular instant messaging service.
Tencent also owns Riot Games, the developer of League of Legends, as well as stakes in other prominent companies such as Tesla and Snap Inc.
With this investment, Ubisoft plans to focus on its other marquee titles, including Tom Clancy’s Ghost Recon and The Division. This decision comes after delays to the launches of new games and falling sales, which have led to a sharp decline in Ubisoft’s stock market value over recent years. Despite some shares receiving a boost earlier this month with the launch of ‘Assassin’s Creed Shadows’ , concerns about the company’s management and performance persist.
The ‘Assassin’s Creed’ series has sold more than 200 million copies worldwide and generated approximately €4 billion in revenue over the decade up to 2024. This franchise, along with Far Cry and Tom Clancy’s Rainbow Six, will be managed by the new Ubisoft subsidiary, which is expected to benefit from Tencent‘s investment and expertise.
Assassin's Creed is a popular video game franchise that originated in 2007.
Developed by Ubisoft, the series follows the centuries-long conflict between the Assassins and Templars.
The games are set in various historical periods, from the Crusades to the American Revolution.
Players take on the role of an Assassin, completing quests and fighting against Templar forces.
The franchise has since expanded to include novels, comics, and a live-action film.
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With over 100 million copies sold worldwide, Assassin's Creed is one of the best-selling video game franchises of all time.
This significant investment marks a turning point for Ubisoft, as it seeks to revitalize its business and capitalize on the popularity of its beloved franchises. With Tencent’s support, Ubisoft aims to regain its footing in the competitive video game industry and continue to deliver engaging experiences for gamers worldwide.
