Ubisoft has announced the launch of a new gaming subsidiary with $1.25 billion in investment from Chinese tech giant Tencent. The new unit will focus on expanding Ubisoft’s flagship franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six.
On Thursday, Ubisoft published a press release in which the company shared its vision of transforming these franchises into “evergreen and multi-platform” ecosystems.
“Backed by greater investment and boosted creative capacities, it will drive further increases in quality of narrative solo experiences, expand multiplayer offerings with increased frequency of content release, introduce free-to-play touchpoints, and integrate more social features,” the company stated in a press release.
The fresh investment will value the new entity at a pre-money Enterprise Value of €4bn, which reflects a fourfold growth on Ubisoft’s average sales from 2023 to 2025. Tencent’s strategic move strengthens Ubisoft’s balance sheet.
“Today, Ubisoft is opening a new chapter in its history. As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies,” said Yves Guillemot, Co-Founder and Chief Executive Officer.
“We are committed to building a sharper, more focused organization-one where talented teams will take our brands to the next level, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services, all with the goal of delivering enriching, memorable games that exceed players’ expectations, and create superior value for our shareholders and other stakeholders,” he added further.
“We are excited to extend our longstanding partnership with Ubisoft through this investment, which reflects our continued confidence in Ubisoft’s creative vision and exceptional talent to drive sustained success in the industry. We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers,” said Martin Lau, President of Tencent.
In January, the company appointed advisors to explore new options, which also sparked some rumors about the company’s possible sale. Tencent had previously been in talks with Ubisoft’s founding Guillemot family about a possible take-private deal, according to Bloomberg.
Read Also: Samsung’s New Patent Hints Foldable Gaming Handheld Device
