Tencent, China’s largest technology company, has invested €1.2 billion in a spin-off from Ubisoft, boosting its gaming portfolio. The new subsidiary, valued at €4 billion, will oversee Ubisoft’s major franchises, including Assassin’s Creed, Far Cry, and Rainbow Six. Tencent now owns roughly 25% of the business, while Ubisoft retains 75%.
Ubisoft’s co-founder and CEO, Yves Guillemot, called this development a “new chapter” for the French gaming giant. Tencent, which already owns a stake of nearly 10% in Ubisoft, has become the company’s second-largest shareholder. Tencent’s president, Martin Lau, expressed excitement about deepening their long-term partnership with Ubisoft through this strategic investment.
The spin-off will allow Ubisoft to refocus on its other flagship games, such as Tom Clancy’s Ghost Recon and The Division. Meanwhile, Tencent’s involvement strengthens its global gaming presence, including notable investments in companies like Epic Games and Riot Games.
Despite Ubisoft’s global recognition, the company has struggled with declining sales and delayed game launches in recent years. Assassin’s Creed Shadows, a much-anticipated title, faced multiple delays before its recent launch. Although this release boosted Ubisoft’s stock, earlier disappointments like Star Wars Outlaws raised questions about the firm’s management and direction.
The Assassin’s Creed franchise remains Ubisoft’s crown jewel, having sold over 200 million copies worldwide. According to Ubisoft’s financial reports, the series generated €4 billion in revenue over the past decade. Industry experts view Tencent’s investment as a strategic move to capitalize on the global popularity of these franchises.
The Tencent investment in the Ubisoft spin-off aims to rejuvenate these games’ market presence while leveraging their loyal fanbase. As Tencent strengthens its grip on global gaming, this investment signals a bold step toward dominating the industry.
