After hearing many rumors about Tencent buying Ubisoft, we learned they found a different plan. Ubisoft announced it created a new company just for its biggest game series, which includes Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six brands. Tencent paid €1.16 billion for a 25% share in this new business unit.
The announcement tells us what might happen with these game series next. Ubisoft says this new company helps them create a fresh business approach. They want to spend more money making better stories in single-player games. They also plan to update multiplayer games more often, add social features, and create free-to-play options. This happened after delays affected the latest Assassin's Creed: Shadows, which still sold well.
Ubisoft mentioned that this change will speed up its plan to release games on multiple systems. They recently said they want more games available everywhere on day one instead of making them exclusive to certain consoles. Their press statement gave lots of details about how the new company works.
The new company includes teams working on these game series in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It covers old games, current projects, and future titles. In exchange for royalty payments, Ubisoft gives this company permission to use these brands forever. The deal means Tencent pays money for part of this French-based company.
Ubisoft still fully controls the new company even after Tencent buys 25%. The money helps Ubisoft pay off debts, change its business, and grow these popular game series. Several things must happen before the deal is finalized, like checking if the price is fair, setting up the new company, and getting government approval.
They expect everything to be finished before the end of 2025. The new company's leaders will be supervised by a Board of Directors. They will focus on creative ideas and simple operations. They can make fast, important choices about development, marketing, and sales to keep these games popular for years.
Tencent receives typical minority protection rights and must agree to certain asset sales. Tencent cannot sell its shares for five years unless Ubisoft loses majority control, which Ubisoft must keep for at least two years. The agreement includes standard rules about transferring shares between companies.
If someone takes over Ubisoft with Board approval, both companies have options. Ubisoft can buy Tencent's shares, or Tencent can sell them back. The price depends on market value or company earnings. Ubisoft has extra price protection during the first four years after the deal closes.
The announcement tells us what might happen with these game series next. Ubisoft says this new company helps them create a fresh business approach. They want to spend more money making better stories in single-player games. They also plan to update multiplayer games more often, add social features, and create free-to-play options. This happened after delays affected the latest Assassin's Creed: Shadows, which still sold well.
Ubisoft mentioned that this change will speed up its plan to release games on multiple systems. They recently said they want more games available everywhere on day one instead of making them exclusive to certain consoles. Their press statement gave lots of details about how the new company works.
The new company includes teams working on these game series in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It covers old games, current projects, and future titles. In exchange for royalty payments, Ubisoft gives this company permission to use these brands forever. The deal means Tencent pays money for part of this French-based company.
Ubisoft still fully controls the new company even after Tencent buys 25%. The money helps Ubisoft pay off debts, change its business, and grow these popular game series. Several things must happen before the deal is finalized, like checking if the price is fair, setting up the new company, and getting government approval.
They expect everything to be finished before the end of 2025. The new company's leaders will be supervised by a Board of Directors. They will focus on creative ideas and simple operations. They can make fast, important choices about development, marketing, and sales to keep these games popular for years.
Tencent receives typical minority protection rights and must agree to certain asset sales. Tencent cannot sell its shares for five years unless Ubisoft loses majority control, which Ubisoft must keep for at least two years. The agreement includes standard rules about transferring shares between companies.
If someone takes over Ubisoft with Board approval, both companies have options. Ubisoft can buy Tencent's shares, or Tencent can sell them back. The price depends on market value or company earnings. Ubisoft has extra price protection during the first four years after the deal closes.
