The Chinese giant Tencent has made a huge $297 million investment increasing its stake in Ubisoft. The Assassin’s Creed maker Ubisoft announced on Tuesday that Tencent had acquired a 49.9% economic stake in Guillemot Brothers Limited. The Guillemot Brothers holds the largest stake in Ubisoft. As the deal concludes, Tencent will be now allowed to increase its shareholding in Ubisoft to 9.99%. Ubisoft CEO and co-founder Yves Guillemot said Tencent’s increased stake was done to secure Ubisoft’s value for the future.
Tencent aims to bring more of Ubisoft’s AAA IPs to mobile
As Tencent has deliberately acquired a minor financial stake of 49.9% in Guillemot Brothers Limited, the big giant is hoping to bring some of the more Ubisoft’s AAA franchises to mobile. President of Tencent, Martin Lau said this strengthened partnership will also help to reinforce both company’s footprint in the mobile gaming market, incurring huge profits.
The author of Axios Gaming Newsletter, Stephen Totilo, addressed in a statement on his Twitter handle, that Tencent is not wholly buying Ubisoft, rather it is investing heavily in the company.
This concludes one thing, Guillemot Brothers Limited will still have an upper hand in its stakes in Ubisoft and this deal will not hamper any change in leadership as Guillemot Brothers continue to enjoy its exclusive control over Ubisoft.
The Big Giant will now be able to increase its stake almost double, from 4.5% to 9.99% with a condition that Tencent will not be able to share its sales for five years and cannot increase its shareholding in Ubisoft beyond 9.99% for eight years. In addition to bringing more Ubisoft games to mobile, Tencent is looking to launch more Ubisoft PC titles in China.
With a few of Ubisoft’s IPs (such as The Division, Rainbow Six) already heading to mobile, this seems like the right time for Tencent to take the plunge. And the ever-growing mobile market is definitely going to get a boost with this massive deal. It’s about a time when we’ll see a Far Cry mobile version or even a Ghost Recon mobile game!