Ubisoft and Tencent have Partnered Up

[Grimno]

So remember all those people claiming Tencent was going to BUY Ubisoft?

Turns out, that's not happening~

Ubisoft is forming a new subsidiary company in partnership with Tencent.
The subsidiary is valued at ~$4.3B and includes IPs like Assassin's Creed, Far Cry and Rainbow Six.

Tencent is investing a 25% stake in the company.

So Ubisoft and Tencent have partnered up.

https://www.investing.com/news/stock-market-news/tencent-acquires-25-stake-in-ubisofts-new-gaming-subsidiary-93CH-3952688

This will also help shield those IPs in case anything does happen.
Tencent will be getting royalties for sales, but they're a financial backer/partner.


Edit: Funny enough, this very thing got reported on happening by Eurogamer almost 2 weeks ago

https://www.eurogamer.net/ubisoft-reportedly-considering-fresh-business-to-own-assassins-creed-and-other-big-franchises-co-owned-by-others-like-tencent

[Xina10]

Theyre losing money, where do you think theyll cut expenses?

[Grayson.]

Originally posted by HiRed_ThuG:

Originally posted by Deadly Dan:

The countless employees that will be inevitably let go beg to differ lol

Why would they be let go?

Pick one.

https://www.scmp.com/tech/big-tech/article/3206944/tencent-fired-more-100-people-and-blacklisted-23-firms-last-year-fighting-bribery-and-embezzlement

https://economictimes.indiatimes.com/tech/technology/tencent-fires-5-5k-workers-as-sales-down-for-1st-time-since-going-public/articleshow/93694401.cms

https://edition.cnn.com/2024/01/23/tech/riot-games-global-layoffs-intl-hnk/index.html

https://techcrunch.com/2022/09/15/tencent-lays-off-nearly-all-of-staff-at-its-gaming-site-fanbyte/

https://asia.nikkei.com/Spotlight/Caixin/Tencent-fires-gaming-and-fintech-staff-in-wake-of-miserable-Q1

[Deadly Dan]

Originally posted by HiRed_ThuG:

Originally posted by Deadly Dan:

The countless employees that will be inevitably let go beg to differ lol

Why would they be let go?

To save cost and appear more profitable. If they weren't able to be profitable in a long time with the way they were operating, why do you think that they'll just continue on like they have been for the last years? This step was taken because someone at Ubisoft said "That's it guys, we gotta change something".

As Yves Guillemot said it himself: "This is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious." Being agile means slimming down considerably. That's why they would be let go.

[Deadly Dan]

Originally posted by Grayson.:

Originally posted by HiRed_ThuG:

Why would they be let go?

Pick one.

Thanks for doing the legwork

[HiRed_ThuG]

Originally posted by Deadly Dan:

Originally posted by HiRed_ThuG:

Why would they be let go?

To save cost and appear more profitable. If they weren't able to be profitable in a long time with the way they were operating, why do you think that they'll just continue on like they have been for the last years? This step was taken because someone at Ubisoft said "That's it guys, we gotta change something".

As Yves Guillemot said it himself: "This is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious." Being agile means slimming down considerably. That's why they would be let go.

The subsidiary will be controlled by Ubisoft and gives them much more time.

You would have a point if It weren't. Tencent are essentially giving them a cash injection for a royalty on sales.

It's still the same Ubisoft with more money.

[SciopticChimken]

Yeah it looks like they are gearing up for mass layoffs. They are moving their most profitable IPs into this subsidiary from Ubisoft Entertainment SA.

[BoolXorElse]

The spin on this as anything but an L is crazy.

[SciopticChimken]

Originally posted by BoolXorElse:

The spin on this as anything but an L is crazy.

Yeah theres already an exclusive from Insider Gaming on Ubisoft employees saying they are really worried and the head of Ubi Paris is already on damage control

I know this was going to happen but its still sad to see. But hopefully we will get better quality games out of this than the slop theyve been peddling

[HiRed_ThuG]

Originally posted by BoolXorElse:

The spin on this as anything but an L is crazy.

How is a loss?

"Hey, I've heard you are having financial troubles, here is some money for a royalty on the sales of these 3 franchises. You'll still have full control of them.

[Deadly Dan]

Originally posted by HiRed_ThuG:

Originally posted by Deadly Dan:

To save cost and appear more profitable. If they weren't able to be profitable in a long time with the way they were operating, why do you think that they'll just continue on like they have been for the last years? This step was taken because someone at Ubisoft said "That's it guys, we gotta change something".

As Yves Guillemot said it himself: "This is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious." Being agile means slimming down considerably. That's why they would be let go.

The subsidiary will be controlled by Ubisoft and gives them much more time.

You would have a point if It weren't. Tencent are essentially giving them a cash injection for a royalty on sales.

As Yves Guillemot implied, they are slimming down to stay "agile". They will not continue the way they have been. If you merge teams from multiple divisions into a subsidiary, the teams will be slimmed down, this is nothing new and should surprise no one. This is before Tencent has any say in this. But if Ubisoft won't turn profitable fast, Tencent will step in, this is certain. What happens then is outlined in the sources provided above.

[AP0THICx]

Whats sad is Tencent see Ubisoft at a value of only 4.5b if they have acquired a quarter of the company.

[SciopticChimken]

Originally posted by HiRed_ThuG:

Originally posted by BoolXorElse:

The spin on this as anything but an L is crazy.

How is a loss?

"Hey, I've heard you are having financial troubles, here is some money for a royalty on the sales of these 3 franchises. You'll still have full control of them.

Ignorance at its finest

[HiRed_ThuG]

Originally posted by Deadly Dan:

Originally posted by HiRed_ThuG:

The subsidiary will be controlled by Ubisoft and gives them much more time.

You would have a point if It weren't. Tencent are essentially giving them a cash injection for a royalty on sales.

As Yves Guillemot implied, they are slimming down to stay "agile". They will not continue the way they have been. If you merge teams from multiple divisions into a subsidiary, the teams will be slimmed down, this is nothing new and should surprise no one. This is before Tencent has any say in this. But if Ubisoft won't turn profitable fast, Tencent will step in, this is certain. What happens then is outlined in the sources provided above.

Where did you read that they are slimming down?

[Darkrayne]

Originally posted by AP0THICx:

Whats sad is Tencent see Ubisoft at a value of only 4.5b if they have acquired a quarter of the company.

Not the company, the subsidiary. Assassin's Creed, Far Cry and Rainbow Six. That's all. Doesn't even seem to include any other Tom Clancy games.

[HiRed_ThuG]

Originally posted by AP0THICx:

Whats sad is Tencent see Ubisoft at a value of only 4.5b if they have acquired a quarter of the company.

They haven't acquired quarter of the company they have invested 25% into the new subsidiary.