Tencent Acquires 25% Stake in Ubisoft’s Assassin's Creed, Far Cry

Chinese tech giant Tencent has invested $1.25 billion in a new subsidiary of Ubisoft, which will manage popular game franchises including Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six. This investment gives Tencent approximately a 25% stake in the new entity, valued at around $4 billion, while Ubisoft retains control over the intellectual property and operational direction for now. However, a clause in the agreement indicates that Ubisoft could lose majority control of the subsidiary after two years, raising concerns about the long-term viability of its franchises. The deal comes at a critical time for Ubisoft, which faces significant debt and challenges with recent game launches. Analysts suggest that Tencent's experience in game development could bolster Ubisoft's performance both domestically and internationally. The collaboration aims to leverage Tencent's resources to revitalize Ubisoft's most significant assets amid its ongoing struggles.