On January 9th, Ubisoft said it had postponed the launch of “Assassin’s Creed Shadows” and appointed an advisor to review strategic options.
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Ubisoft On Thursday, it announced that it will create a new gaming subsidiary with the Chinese technology giant Tencent We will invest 1.16 billion euros ($1.25 billion) in the unit.
The subsidiaries will focus on Ubisoft’s most well-known game brands, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six.
“We will focus on building a gaming ecosystem designed to be truly evergreen and multi-platform,” Ubisoft said in a press release Thursday.
“Based on by greater investments, it boosts creative abilities, further improves the quality of story solo experiences, increases the frequency of content releases, introduces free touchpoints, and expands multiplayer products that integrate more social features,” the company added.
The investment from Tencent is valued its new Euro 4 billion subsidiary, Ubisoft said it implies a 4x multiple based on average sales from full year 2023 to 2025.
“It highlights the strong value of Ubisoft’s IPS, greatly strengthens our balance sheet, continues our efforts to become a more agile organization, unlocking the full creative potential of our teams, and helps our resources better fit with the expectations of our ever-evolving players,” Ubisoft said.
The move follows months of speculation about Ubisoft’s future. In January, Ubisoft appointed an advisor to review strategic options and steal rumors about potential sales.
Earlier this month, Bloomberg reported that Games Publisher is considering bringing external investments to new entities, including its core intellectual property.
It followed a report from Bloomberg last year that Tencent was discussing a potential transaction agreement with the founding Guillemot family of Ubisoft.
Transaction news arrives a week after Ubisoft released Assassin’s Creed Shadows, the latest title in its bestselling franchise. The game was filled with general positive reviews from critics and scored an average score of 82 on review aggregation site Metallicik.
