Tencent hand Ubisoft a big wad of cash to spin out Assassin's Creed, Far Cry, and Rainbow Six as a separate business
1 min read
Summary
Video games developer Ubisoft has created a new subsidiary company for its bestselling franchises, Assassin’s Creed, Rainbow Six and Far Cry, with Chinese company Tencent investing €1.16bn, giving it a 25% stake in the new company.
Ubisoft has been in talks with Tencent since January about a potential deal, with speculation that the two companies were involved in talks regarding a takeover, however, the latest deal only sees Tencent investing in the more profitable franchises within Ubisoft’s portfolio.
The deal will see the development teams for these franchises moved to the new subsidiary, but they will still report to Ubisoft CEO Yves Guillemot.
Ubisoft has been hit by a string of failed games in recent years, such as XDefiant and Skull & Bones, which resulted in job cuts and the closure of a studio, so the deal with Tencent is expected to strengthen Ubisoft’s financial position.
