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

[Cruna]

Ursprungligen skrivet av Xina10:

Ursprungligen skrivet av 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?

Well Tencent is given the ownership over UBI franchizes and ALSO 25% stake from teh company. If UBI would die, Tencent simply will contract a new developer to continue the franchizes. As of now UBI doesn't own these IP-s, UBI became just the development company. Moving forward you will see Tencent logo on AC games (whenever new ones will be developed)

[XxEyeDragonxX]

Ursprungligen skrivet av Xina10:

Ursprungligen skrivet av 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?

If a parent company is liquidated, then it's unlikely the subsidiary will survive unless it's sold whole to a new owner who continues operations.

https://www.irwin-insolvency.co.uk/liquidation-of-parent-companies/#:~:text=If%20a%20parent%20company%20is,new%20owner%20who%20continues%20operations.

I don't know if it's the only possibility, but it's what I found doing a search with your question.

[AdahnGorion]

This is what we call a classic reconstruction.
Tencent is already the third largest shareholder in Ubisoft with almost 10% of the stocks (The Guillemot Family have 14%...)

Tencent or another investor company will most likely end up being a majority shareholder in the near future.
This recontruction however, is a sign that staff reductions, division closings are incoming and most likely also the selling of IPs outside this new construction.

It makes sense. Ubisoft will focus on the 3 big IP´s they have and get rid of everything else. Ie.
Could Anno series go to Paradox? most likely (Tencent also own a good share in that, they do in many large companies)
Could Prince of Persia go to Microsoft? most likely, same with Rayman
What about HoMM, well.. maybe Paradox as well in the future? (Ubisoft is releasing a new HoMM soon, so it wont be until after that and depending on how it performs)


Other IPs (not all, just listing some)
Watch Dogs
Call of Juarez
The Settlers
Just Dance

[AP0THICx]

Is the "Get used to not owning your company" meme

[Darkrayne]

Ursprungligen skrivet av Xina10:

Ursprungligen skrivet av 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?

Usually sold to a different owner assuming someone wants it. In this case, Tencent would probably fully acquire it unless it's performance is disastrous.

[HiRed_ThuG]

Ursprungligen skrivet av Cruna:

Ursprungligen skrivet av Xina10:

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

Well Tencent is given the ownership over UBI franchizes and ALSO 25% stake from teh company. If UBI would die, Tencent simply will contract a new developer to continue the franchizes. As of now UBI doesn't own these IP-s, UBI became just the development company.

Tencent don't have ownership of the IPs.

[Grimno]

Ursprungligen skrivet av HiRed_ThuG:

Ursprungligen skrivet av 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.

It's not.
Ubisoft still owns it, they finally have a large investor which they've been trying to get for over a year, and they have complete creative freedom.

The Guillemot family is dancing

[HiRed_ThuG]

Ursprungligen skrivet av Xina10:

Ursprungligen skrivet av 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

They were losing money. That doesn't mean that it needs to continue and the cash should help with that.

[Riktor87]

Oh well, I'd fully expected them to take their 10% vote to 40 or 50%. We'll see how the MTX goes from here. A quarter vote still isn't anything to scoff at though in the corporate level.

[HiRed_ThuG]

Ursprungligen skrivet av Grimno:

Ursprungligen skrivet av HiRed_ThuG:

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.

It's not.
Ubisoft still owns it, they finally have a large investor which they've been trying to get for over a year, and they have complete creative freedom.

The Guillemot family is dancing

Yeah any good new for Ubisoft and the haters will try their best to paint it as something bad.

[AP0THICx]

Tencent have a 25% share which means all decisions do have to go through Tencent.

[Ferranis]

"Restructuring" (=layoffs) in a few month

[Ongen]

Tencent must love loosing money, letting the Guillemot family in charge... As if they aint the reason Ubisoft failed so hard 😂

[Grimno]

Ursprungligen skrivet av HiRed_ThuG:

Ursprungligen skrivet av Grimno:

It's not.
Ubisoft still owns it, they finally have a large investor which they've been trying to get for over a year, and they have complete creative freedom.

The Guillemot family is dancing

Yeah any good new for Ubisoft and the haters will try their best to paint it as something bad.

They're already moving the goal posts

Remember, they SAID, hell, spammed that-

1. Ubisoft would go Bankrupt
(Didn't happen)

2. Ubisoft would shut down
(Didn't happen)

3. Ubisoft would be bought and owned by Tencent
(Didn't happen)

Last year there were talks going on.
Everyone knew changes would happen in some way, everyone called that.

The only thing now is...
Ubisoft is protecting their best IPs.
The only ones at risk job wise are those not with their main IPs.
However the partnership does include their backlog and dormant IPs.
So we'll have to see. Either way, I've been stating Ubisoft needs to trim the fat which they've needed to do once Covid ended, and this is probably them doing so as well.

[♫RL]

Ursprungligen skrivet av AdahnGorion:

This is what we call a classic reconstruction.
Tencent is already the third largest shareholder in Ubisoft with almost 10% of the stocks (The Guillemot Family have 14%...)

Tencent or another investor company will most likely end up being a majority shareholder in the near future.
This recontruction however, is a sign that staff reductions, division closings are incoming and most likely also the selling of IPs outside this new construction.

It makes sense. Ubisoft will focus on the 3 big IP´s they have and get rid of everything else. Ie.
Could Anno series go to Paradox? most likely (Tencent also own a good share in that, they do in many large companies)
Could Prince of Persia go to Microsoft? most likely, same with Rayman
What about HoMM, well.. maybe Paradox as well in the future? (Ubisoft is releasing a new HoMM soon, so it wont be until after that and depending on how it performs)


Other IPs (not all, just listing some)
Watch Dogs
Call of Juarez
The Settlers
Just Dance

Makes me a bit worried, as I do like the Rayman games a lot. On the same token if Rayman does get sold off Rayman Legends might finally be free from that god awful launcher, I legit have not been able to play my copy because of it. Legit one of the few games I care about from Ubi, so maybe this is a good thing. We'll see I suppose, for the time being I'll just be watching.