Tencent Invests $1.25 Billion in Ubisoft's New Gaming Venture

Chinese technology behemoth Tencent has committed an investment of €1.2 billion (approximately $1.25 billion) into a spin-off from Ubisoft, the renowned creator of the Assassin’s Creed series. This investment grants Tencent a 25% ownership stake in the new subsidiary, which is valued at around €4 billion and will oversee major Ubisoft franchises including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. Following this deal, Tencent becomes Ubisoft’s second-largest shareholder, with a holding of just under 10% in the parent company. Yves Guillemot, co-founder and CEO of Ubisoft, heralded this as a new chapter for the company, while Tencent’s President Martin Lau expressed enthusiasm about deepening their longstanding partnership.

Despite this positive development, Ubisoft has faced challenges recently, including a significant drop in its stock market value due to game launch delays and dwindling sales. The upcoming release of Assassin’s Creed Shadows was delayed multiple times, mirroring the disappointing sales of another title, Star Wars Outlaws, leading to concerns about Ubisoft’s management. Video game journalist Shannon Liao highlighted the opportunity this investment presents for Tencent to capitalize on beloved franchises that hold significant cultural weight within the gaming community. Historically, the Assassin’s Creed series alone has sold over 200 million copies and was reported to have generated roughly €4 billion in revenue over the past decade, up to 2024.