No, Ubisoft is not being absorbed by Tencent

[The Former]

Ubisoft created a new studio using some of their talent, and controlling stake in that subsidiary will be owned by Tencent. The parent company, Ubisoft, is still majority owned by the Guillemot family, followed closely by French company Ubisoft Entertainment SA (in other words, the company itself).

[Ryuudou]

Not even that. Tencent investing in an Ubisoft subsidiary (something you do with SUCCESSFUL companies) while Ubisoft gives nothing and maintains control of everything is further evidence that Shadows is doing well.

[DrunkGuineapig]

They gave all of the money-making IPs to the new company, so Ubisoft itself isn't worth a dime now. Thousands of people will likely get fired...

[Shockz]

Some massive cope threads now appearing. I guess the toxic leftists are now seething.
What is probably going to happen now is that Ubisoft will fire a few thousand people. These people will be replaced by re-hires in China and we will finally get games for chuds eh.

Ubisoft is really owning the chuds here by falling apart and needing to be rescued by Tencent

[Vixziค็็็็็n]

Originally posted by Ryuudou:

It's not even that. Tencent is just investing in an Ubisoft subsidiary (something you do with SUCCESSFUL companies) while Ubisoft gives nothing and maintains control of everything, which is further evidence how well Shadows is doing.

lol that's mad cope. Being that this is something I'm quite familiar with in the industry I'm just going to say. NO. This is not what they do at all, in fact we can go further than that to simply look at Tencent's record. Tencent doesn't give a care in the world about Ubisoft, what it cares about is the IPs it holds.

You also don't seem to know much about the language of the deal. Also to note successful companies generally don't do layoffs, bloated ones or unsuccessful ones do. Which is my field of expertise btw. Use of the word 'agile' should be particularly concerning.

"This new subsidiary includes the teams developing the Rainbow Six, Assassin’s Creed, and Far Cry franchises based in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, as well as Ubisoft’s back-catalog and any new games currently under development or to be developed. So, it sounds like existing projects are safe, and there is no word yet on more layoffs."

This explains the situation far better than whatever you wrote above:

TL;DR: This is primarily a financial move. Tencent doesn't want to buy Ubisoft; they want to buy a stake in the value of the IP Ubisoft develops. If anything goes wrong with Ubisoft, Tencent gets a direct stake in the most valuable assets, which will likely be the IP itself.

They're creating a company that holds the IP for all games. So this company (Ubisoft Neo, why not) will own the concept of an Assassin's Creed, Far Cry, Ghost Recon, etc, game. The OG Ubisoft will pay to license the game concept from Ubisoft Neo.

The benefit of this is that OG Ubisoft will be encouraged to make valuable games that bring in sales, and have a reason to develop games for older franchises since the license fee will be lower for these. Ubisoft Neo then has an incentive to make sure these games don't damage the value of the IP, so they'll ensure OG Ubisoft doesn't make a game that reduces the value of Far Cry by releasing a stinker.

The downside is that OG Ubisoft will be limited in making games that Ubisoft Neo owns. Ubisoft Neo will decide what is worth making games for, and can effectively strangle OG Ubisoft from profitability directly from game sales, and further incentivize heavy post-purchase transactions. For example, let's say Far Cry 6 made $100,000,000 profit on a $50,000,000 budget, so Neo can charge OG Ubisoft $50,000,000 to license Far Cry, and now OG Ubisoft needs to increase monetization to make any money on this new Far Cry. On top of that, Neo can decide to sell off a property for a quick profit and limit OG Ubisoft's library for new games.

[Foulcher]

Blue-haired activists in their ranks will think twice before wanting to make a woke game again

This move is obviously to protect the licenses under Tencent umbrella

[Vahn]

Originally posted by The Former:

Ubisoft created a new studio using some of their talent, and controlling stake in that subsidiary will be owned by Tencent. The parent company, Ubisoft, is still majority owned by the Guillemot family, followed closely by French company Ubisoft Entertainment SA (in other words, the company itself).

Your taking every word as it is. What it means is that the subsidiary they created bought all the major IP in which Tencent will have major control. This will result in lay offs of thousands of employee to the studios that currently hold all those IP's as Tencent has right who to hire in that new subsidiary. And Ubisoft the parent company no longer has any right to those IP and will only be getting royalties. This deal is majority in the favor of tencent. Ubisoft already knew that AC shadows will not save the company so this deal was made long ago and since AC shadow is not out and flopped is the final nail in the coffin. At this point i would not be surprised if they close down Ubisoft and file bankruptcy and just keep the subsidiary.

[Ryuudou]

Originally posted by DrunkGuineapig:

They gave all of the money-making IPs to the new company, so Ubisoft itself isn't worth a dime now. Thousands of people will likely get fired...

That's not how a subsidiary works.

[The Former]

I wish I could filter posts to block any that include the word "cope". Slang tires out so fast on Steam.

Originally posted by Vahn:

Your taking every word as it is. What it means is that the subsidiary they created bought all the major IP in which Tencent will have major control. This will result in lay offs of thousands of employee to the studios that currently hold all those IP's as Tencent has right who to hire in that new subsidiary. And Ubisoft the parent company no longer has any right to those IP and will only be getting royalties. This deal is majority in the favor of tencent. Ubisoft already knew that AC shadows will not save the company so this deal was made long ago and since AC shadow is not out and flopped is the final nail in the coffin. At this point i would not be surprised if they close down Ubisoft and file bankruptcy and just keep the subsidiary.

Took me three seconds to disprove this via an internet search:

The new subsidiary will "remain exclusively controlled and consolidated by Ubisoft"

All they did was restructure the company. Companies do this all the time.

[Vahn]

Originally posted by The Former:

I wish I could filter posts to block any that include the word "cope". Slang tires out so fast on Steam.

Originally posted by Vahn:

Your taking every word as it is. What it means is that the subsidiary they created bought all the major IP in which Tencent will have major control. This will result in lay offs of thousands of employee to the studios that currently hold all those IP's as Tencent has right who to hire in that new subsidiary. And Ubisoft the parent company no longer has any right to those IP and will only be getting royalties. This deal is majority in the favor of tencent. Ubisoft already knew that AC shadows will not save the company so this deal was made long ago and since AC shadow is not out and flopped is the final nail in the coffin. At this point i would not be surprised if they close down Ubisoft and file bankruptcy and just keep the subsidiary.

Took me three seconds to disprove this via an internet search:

The new subsidiary will "remain exclusively controlled and consolidated by Ubisoft"

All they did was restructure the company. Companies do this all the time.

If you think this is restructuring your sadly mistaken. Ubisoft as a company is no longer profitable. Hence they had to make a deal with Tencent, this is effectively selling their IP but still have control over it but loosing control at the same time.

The provisions also seems like a possibility of a take over.

[soso]

Originally posted by DrunkGuineapig:

They gave all of the money-making IPs to the new company, so Ubisoft itself isn't worth a dime now. Thousands of people will likely get fired...

This. Slowly Tencents team will take full control of the franchise and phase out the current dev team. Just like what happened to Marvel Rivals and their subsidiary US team.

[Vahn]

Originally posted by Black Fashion:

Originally posted by Vahn:

Hence they had to make a deal with Tencent

Other way around. The deal fell through. Shadows doing well is why Tencent is throwing money at them while not asking for anything.

Yeah sure make yourself believe that.

[Butcher]

I wish Tencent finally bought 100% of all western studios. This way we can get good games again.

[Fichek]

Originally posted by Ryuudou:

Originally posted by DrunkGuineapig:

They gave all of the money-making IPs to the new company, so Ubisoft itself isn't worth a dime now. Thousands of people will likely get fired...

That's not how a subsidiary works.

That's exactly how a subsidiary works.

[HiRed_ThuG]

Originally posted by Fichek:

Originally posted by Ryuudou:

That's not how a subsidiary works.

That's exactly how a subsidiary works.

Ubisoft have full control. How hard is that you you to understand?

[TH3R4BB!T]

Looks like the 'Chinese taking over' posts are more trending than the true ones. Tencend did not BUY UbiSoft, only bought more stock going from 10% to 25%, so having a bigger share. Now one source claims employees are getting fired, that Tencend is taking part of the development over. Unless UbiSoft makes it official, it is still 'fake news' on the latter. People read a news title and start screaming these days.