Assassin's Creed maker gets $1.25bn Chinese investment

Tencent, a major technology company from China, has made a significant investment of 1. 25 billion dollars in Ubisoft, the well-known creator of the Assassin's Creed video game series. This investment will allow Tencent to own approximately 25% of a new subsidiary that Ubisoft is establishing, while Ubisoft retains the remaining ownership. This new company is valued at around 4 billion euros and will manage some of Ubisoft's most popular franchises, including Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six. Tencent is recognized as one of the largest video game developers globally and is also famous for its internet services, particularly the widely used messaging app WeChat. Yves Guillemot, the co-founder and CEO of Ubisoft, expressed excitement about this new partnership, stating, 'Today Ubisoft is opening a new chapter in its history. ' With this investment, Tencent becomes Ubisoft's second-largest shareholder, holding just under 10% of the company. Martin Lau, the President of Tencent, shared his enthusiasm, saying, 'We are excited to extend our longstanding partnership with Ubisoft through this investment. ' This collaboration signifies a strengthening of the relationship between the two companies. Ubisoft plans to concentrate on its other major titles, such as Tom Clancy's Ghost Recon and The Division, as they navigate through recent challenges. The company's stock market value has seen a sharp decline in recent years due to delays in launching new games and a drop in sales. Despite a recent boost in their stock value following the release of the much-anticipated Assassin's Creed Shadows, which faced multiple delays, Ubisoft has struggled with the performance of other titles, including Star Wars Outlaws. Concerns have been raised about the management of Ubisoft, with video game journalist Shannon Liao commenting, 'Ubisoft has all these great games, like Assassin's Creed, that it's known for that recently haven't delivered so much for fans. ' This indicates that while Ubisoft has a strong reputation for creating beloved games, they have not been able to meet the expectations of their fans lately. The current situation has opened up opportunities for Tencent to invest in Ubisoft, allowing them to capitalize on these cherished franchises. The Assassin's Creed series has sold over 200 million copies worldwide and has generated approximately 4 billion euros in revenue over the past decade, according to a Ubisoft earnings report. This highlights the immense popularity and financial success of the Assassin's Creed games, making them a valuable asset for both Ubisoft and Tencent.