Tencent reports that it looks like it’s a big deal for Ubisoft. We know now that its investment is an in-house move to raise its stake in the company. Tencent isn’t taking over Ubisoft, but its number of shares are increasing.
Axios Stephen Totilo tipped up the news on Twitter. [Tencent] is committed to investing heavily in Ubisoft, he writes, before announcing a new 300 million dollar investment in Guillemot Bros, which was announced by co-founders of Ubisoft. The Guillemot family is able to control Ubisoft, something its not in the past decade. Tencents investment is a stake of 49.9%, giving it no control.
ANOTHER: Tencent is AFTER IHREN. But it is investing heavily in the company, announcing a new 300 million (about $$) investment, which would now be 99,9% stake in Guillemot Bros, a company owned by Ubisoft’s co-founders, the company that has the largest share of the company.
Stephen Tolo (@sephentotilo) September 6-2022.
As Totilo pointed out in the thread, Tencent does not have board seats at Guillemot Bros or Ubisoft although its increased investment won’t always generate a profit. However, the Tencents stake in Ubisoft will climb to nearly 10 o’clock, while the Guillemots can reach almost 30 o’clock. That makes for a simple combined vote, although not large enough to give up or control Ubisoft’s direction.
Tencent, as a result of the new investment, will bring several Ubisoft franchises to the mobile and mobile market in China. That’s reasonable: the world’s number one game company is an ideal choice for Chinese localization. The likes of Division Resurgence and the newly announced Assassins Creed Mirage are likely candidates. We should speak to Ubisoft in 2022 about these two titles.
This isn’t the only recent investment that made headlines. Sony and Tencent now own Elden Ring developer FromSoftware, both of which made significant investments in the parent company Kadokawa Corporation. Even though the company still owns 70 percent of its shares, and thus keeps veto power and control, Sony has 14% stake and Tencent’s subsidiary Sixjoy has 16%.