In the latest round of video game firm acquisition news, Ubisoft has announced that Tencent has acquired "a 49.9% economic stake with 5% voting rights in Guillemot Brothers Limited", Ubisoft's largest shareholder and a company formed by Ubisoft's CEO and founder Yves Guillemot and his family.
In a press release, Ubisoft states that this investment will strengthen the company's "core shareholding via the expansion of the concert around the group's founders to the benefit of its long-term stability and development".
The investment totals €300 million, which breaks down as €200 million in share acquisition and €100 million in capital increase. The official statement also mentions that Tencent is providing Guillemot Brothers with "a long-term unsecured loan to refinance its debt" as part of the deal.
The press release also makes clear that Guillemot Brothers Limited is still exclusively controlled by the Guillemot family:
Tencent will not be represented on its Board of Directors and will not obtain any consent or veto rights over the business.
This partnership will presumably help with Ubisoft's efforts in the Chinese gaming market, and the press release specifically mentions the "development of mobile titles from several of Ubisoft's major franchises and the launch of several of Ubisoft's PC titles in China".
Comments 28
Aaand another big publisher succumbing to chinese money -.-' What's next? Microsoft?! xD
I’m guessing worries of Tencent’s influence to Nickel and Dime the consumer (it’s in the name) is a moot point when Ubisoft is the company model they’re investing in. Also guessing with some of the recent accusations Ubisoft won’t be under pressure to sack anyone they don’t want to with this deal.
Seems like a match made in heaven and/or hell!
Let me guess, people aren't going to play ubisoft games anymore 😏
Ubisoft should sell off Rayman. They haven't done anything with the IP in years and it's not like China's going to want to use the brand either.
Tencent previously had stake in Ubisoft and their ownership allowed Ubisoft to avoid the Vivendi hostile takeover. Their previous agreement had a clause stating Tencent couldn’t expand their stake, so its interesting that they got the go to buy stake in Guillmots.
That Rabbids game that was originally exclusive to China should've been delayed until the deal came through.
So how come this is “okay” but when EA and Vivendi had stakes they were seen as hostile?
@Axecon There have been some Rayman mobile games, the most recent one was released in 2019. Not sure if they're any good, though.
I would love to see a sequel in style of Origins and Legends, but I can see why it has been a while. Rayman's creator Michel Ancel started working on Beyond Good & Evil 2, got in the middle of a scandal with some accusations of toxic leadership, and left the gaming industry and Ubisoft in it in 2020.
What does that mean for Rayman? Hard to say, but they may have started working on a new game after Ancel working on Beyond Good & Evil 2 wasn't any reason anymore. Or maybe the series is considered complete and they don't feel like continuing it. I suppose we'll have to wait and see.
Eh, their games weren't really that good anyways.
@McBurn Ubisoft was already balls deep into Chinese money. It was just a matter of time before Tencent made this move. In the next 5 years ubisoft will cease to exist as anything more than a label or a subsidiary.
@ecco6t9 Funny how the kind of people who had a problem with that stuff don't seem to have any issue with Tencent buying things up.
@NotSoCryptic: Only time can tell for certain but yeah, it is certainly going in that direction. Ubisoft was an innovative and consumerfriendly company once, but now most of their games make it so obvious they're just here to suck you out your money.
edit: suck (-you) out your money -.-'
I've said before how much I don't trust Tencent, but I also just don't understand what they're doing sometimes. They've thrown a lot of money at Ubisoft for seemingly not that much influence over them. Then again, business often seems to be intentionally convoluted, so I'm sure they're getting something out of it.
@VoidofLight
I mean, once upon a time they were.
Prince of Persia: Sands of Time won awards when it came out.
But lately? You're right. They certainly haven't been amazing for - at least- a decade
So everyone is ok with Chinese companies stealing our information?
@Axecon If they sell it to Nintendo, I could see that work perfectly. Rayman and the Rabbids would at least get a new home in Nintendo house and we would still see a new Rayman and a new Mario + Rabbids 3, heck we could also finally see Rayman break from his ice prison and finally participate in Super Smash Bros.
Can't wait for this to not affect anyone.
So when are we getting our social credit scores?
Too much Tencent involved in the videogsmes industry already, not good for business.
Tencent is gaining so much power and I'm not liking it in the slightest...
They really cheaped out on the .1% huh?
Could have at least made it a round 50...
@Deviant-Dork Tiktok … Tiktok … Tiktok …
@outsider83 yeah I know... That is bad too. I wouldn't get that ever.
They need to keep Just Dance Unlimited annual pass...
The service is amazing!
The CCP just wants to watch you play, that's all. Can't they just watch you play? Like a kid brother who gets his way, he'll ask mom to make you let him be second player, then next you'll be having to let him play campaign half the time.
Then the Gulags.
Tencent can go to hell, as can any company that sells out to the fascists. Ubisoft, FromSoftware, Platinum Games... Shame on them all.
@PoorGeno Don't forget they also generate more profit for the communist party this way. It's absolutely disgusting how all these western corporations happily finance a system that has actual concentration camps and murders prisoners for organs to transplant.
The Chinese government is going to own the entirety of videogame market in 10 years.
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