Tencent Invests $297 Million in Ubisoft
Ubisoft has received a $297 million investment from Tencent, the company announced Tuesday. The investment came in the form of 200 million euros in share purchases, and an addition 100 million euros in capital.
Tencent now holds a minority stake of 49.9% and 5% voting rights in Guillemot Brothers Limited, the company Ubisoft's founders use to manage Ubisoft.
No board seats for Tencent in either company, Tencent allowed to more than double its stake in Ubisoft to 9.99%, can’t sell its stock for five years. Also giving GB a loan to refinance its debt
— Stephen Totilo (@stephentotilo) September 6, 2022
Tencent to bring “several” Ubisoft AAA games to mobile and Ubisoft PC games to China
Ubisoft CEO and co-founder Yves Guillemot said the investment was made to secure Ubisoft's future, while Tencent president Martin Lau said the partnership would improve both companies' standings in the mobile gaming market.
"We are excited to expand our engagement with the founders, the Guillemot family, as Ubisoft continues to develop immersive game experiences, and to bring some of Ubisoft's most well-known AAA franchises to mobile," Lau said in a news release. "This agreement also aligns with our philosophy to invest alongside creative founders with full confidence that they will lead their companies to new heights."
The Guillemot family retains exclusive control over Guillemot Brothers Limited, and Tencent will not gain a seat on the company's board of directors. However, the Ubisoft's board will allow Tencent to increase its direct stake in Ubisoft from 4.5% to 9.99% of capital and voting rights so long as it does not share its sales for five years, or increase its stake further for eight.
Yves Guillemot assured employees the investment would not affect Ubisoft's operations in an internal memo acquired by The Washington Post.
"Furthermore, it’s important to note that this agreement will not impact our governance," Guillemot wrote. "Tencent is not taking a seat on the board of directors of Ubisoft nor Guillemot Brothers, nor becoming involved in our decisions or day to day operations. Tencent has a reputation as a constructive shareholder that already supports many other leading video game creators in the same way. Our strategy and creative choices remain our own, and Ubisoft’s success continues to depend on all of us joining together to focus on our objectives and the many opportunities in front of us."
Ubisoft will reportedly unveil several new Assassin's Creed games during its Saturday Ubisoft Forward broadcast.