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

[Deadly Dan]

Originally posted by HiRed_ThuG:

Originally posted by Deadly Dan:

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?

This is standard protocol. This is what happens if you merge teams into a subsidiary. This is what you do as a company when you can't turn profitable. Where did you read that there will be no layoffs, when this is a standard practice in the industry to save cost?

[kalyoth]

Originally posted by 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.

In actuality - this was Ubisoft shielding the only assets it had worth money - the gaming division - by getting rid of them - so when Ubisoft as it exists crashes & burns, the owners of the company with the gaming assets newly formed has no liability to creditors or those stock holders.

It is in essence, a major lawsuit pending from all Ubisoft stockholders if this process was never declared to the stockholders prior to it occurring. It may even be subject to being blocked by the EU Regulators if malfeasance is attached to the process. Should be a fun couple of months to see whats left of Ubisoft as the Guillemot family attempt to dump the losses of their bad management upon all the other shareholders...

[Darkrayne]

Originally posted by HiRed_ThuG:

Originally posted by Darkrayne:

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.

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

That's what I said. Not sure why you replied to me. Maybe you meant to reply to AP0THICx.

[HiRed_ThuG]

Originally posted by Deadly Dan:

Originally posted by HiRed_ThuG:

Where did you read that they are slimming down?

This is standard protocol. This is what happens if you merge teams into a subsidiary. This is what you do as a company when you can't turn profitable. Where did you read that there will be no layoffs, when this is a standard practice in the industry to save cost?

Not when you get a huge cash injection. With this news, the likelyhood of layoffs is lower than it was before.

[Xina10]

Originally posted by HiRed_ThuG:

Not when you get a huge cash injection.

They are losing money, cash injection will mean nothing if they keep operating in the same way. Easiest way to trim expenses are layofs

[kalyoth]

Originally posted by HiRed_ThuG:

Originally posted by Deadly Dan:

This is standard protocol. This is what happens if you merge teams into a subsidiary. This is what you do as a company when you can't turn profitable. Where did you read that there will be no layoffs, when this is a standard practice in the industry to save cost?

Not when you get a huge cash injection.

The hugh cash injection is into the "Not Ubisoft" newly formed company holding the assets. Not into Ubisoft as it exists now. In essence, they are cherry picking the good stuff, protecting it from bankrupcy & allowing Ubisoft to die out.

[Darkrayne]

Originally posted by HiRed_ThuG:

Originally posted by Deadly Dan:

This is standard protocol. This is what happens if you merge teams into a subsidiary. This is what you do as a company when you can't turn profitable. Where did you read that there will be no layoffs, when this is a standard practice in the industry to save cost?

Not when you get a huge cash injection. With this news, the likelyhood of layoffs is lower than it was before.

That cash is for the new subsidiary, it wasn't handed over to be used anywhere they like. It's possible, close to certain, there's going be a lot of restructuring outside of the subsidiary, especially because creating the subsidiary will be a restructuring itself.

[HiRed_ThuG]

Originally posted by Darkrayne:

Originally posted by HiRed_ThuG:

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

That's what I said. Not sure why you replied to me. Maybe you meant to reply to AP0THICx.

Yeah, sorry.

[XxEyeDragonxX]

Originally posted by Grimno:

Originally posted by Deadly Dan:

Many will lose their jobs, just as foretold. It's Shadover ...

No one really knows. All I do know is that all of the people claiming Ubisoft was going to shut down, and all the people claiming Ubisoft was going to be bought by tencent are probably all screaming into their pillows and punching air right now

Ubisoft is worth 1.5 or 1.6 billion currently, this subsidiary is worth almost 3 times more and Tencent is buying 1/4 of the subsidiary, it's as if Tencent were buying 2/3 of Ubisoft, only with extra steps.

[Deadly Dan]

Originally posted by HiRed_ThuG:

Originally posted by Deadly Dan:

This is standard protocol. This is what happens if you merge teams into a subsidiary. This is what you do as a company when you can't turn profitable. Where did you read that there will be no layoffs, when this is a standard practice in the industry to save cost?

Not when you get a huge cash injection.

This "huge cash injection" will be used to pay down debts, as stated in the bloomberg article. After that, they need to save costs and where do you think they will start?

[Deadly Dan]

Originally posted by kalyoth:

Originally posted by HiRed_ThuG:

Not when you get a huge cash injection.

The hugh cash injection is into the "Not Ubisoft" newly formed company holding the assets. Not into Ubisoft as it exists now. In essence, they are cherry picking the good stuff, protecting it from bankrupcy & allowing Ubisoft to die out.

Makes a lot of sense actually.

[Cruna]

So basically UBI already sold 25% of their company to Tencent.
And also they sold their own franchizes, and IP-s, Tencent will be making the decisions now for future AC games and the rest of the IP-s, while UBI will still be developing them. That's the deal

UBI isn't able to sustain their own franchizes after AC Shadows flopped also, so they sold them to Tencent. Ubi remains only a developer now, they will not be the owners of the Franchizes anymore. Good job :P

[Darkrayne]

Originally posted by Deadly Dan:

Originally posted by kalyoth:

The hugh cash injection is into the "Not Ubisoft" newly formed company holding the assets. Not into Ubisoft as it exists now. In essence, they are cherry picking the good stuff, protecting it from bankrupcy & allowing Ubisoft to die out.

Makes a lot of sense actually.

it concerns me that all of the Tom Clancy games aren't part of the new subsidiary. I want my Division 3 to be safe...

[Xina10]

Originally posted by Deadly Dan:

Makes a lot of sense actually.

I dont know if it does. What happens to a subsidiary company when the parent company dies?

[Deadly Dan]

Originally posted by Xina10:

Originally posted by Deadly Dan:

Makes a lot of sense actually.

I dont know if it does. What happens to a subsidiary company when the parent company dies?

Depends. They could be bought up cheap if they're not a separate legal entity. They could continue operation if they are.