Assassin's Creed-maker Ubisoft gets $1.25bn investment from Chinese tech giant Tencent

Chinese tech giant Tencent recently announced an investment of 1.2 billion euros (approximately $1.25 billion, £1 billion) in a newly established subsidiary of Ubisoft, the renowned developer of the popular game "Assassin's Creed." This strategic move underscores Tencent's ambition to further solidify its position in the global gaming market.

According to the agreement, Shenzhen-based Tencent will hold approximately a quarter of the shares in the new company, with Ubisoft retaining the remaining stake. The new entity is valued at around 4 billion euros. This new division will be responsible for operating some of Ubisoft's most popular game franchises, including "Assassin's Creed," "Far Cry," and "Rainbow Six," ensuring their continued development and success.

Tencent, one of the world's largest video game developers, is also well-known for its internet services, including the widely used messaging application WeChat. Tencent President Martin Lau stated, "We are pleased to expand our long-term partnership with Ubisoft through this investment." Ubisoft co-founder and CEO Yves Guillemot also remarked, "Today, Ubisoft is opening a new chapter in its history," highlighting the significance of the partnership.

Previously, Ubisoft's stock market value had significantly declined in recent years due to delayed new game releases and decreased sales. Although its share price experienced a slight increase earlier this month with the launch of the latest installment in the "Assassin's Creed" series, the highly anticipated "Assassin's Creed Shadows" has been delayed multiple times. Furthermore, the disappointing performance of Ubisoft's other major title, "Star Wars Outlaws," has raised concerns among some observers regarding Ubisoft's operational strategies.

Gaming journalist Shannon Liao told the BBC, "Ubisoft has excellent franchises like 'Assassin's Creed,' but recent performance has failed to meet fan expectations. Ubisoft's business is now facing challenges, and for Tencent, this is an opportunity to leverage these beloved franchises with a very high reputation among gamers." According to Ubisoft's earnings report released last year, the "Assassin's Creed" series has sold over 200 million copies worldwide, generating approximately 4 billion euros in revenue in the decade leading up to 2024.