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).

[shoopy]

Ubi is restructuring with an injection of funds from Tencent, basically. No, the fact that they have to do it is not good, you can read between the lines in Yves Guillemot's memo, speaking of taking back control and returning to profitability. Basically lowkey admitting that things haven't been great.

It is a smart decision and probably the best move Ubi can make to stay relevant.

[Wise]

They are getting bailed out. But the kicker is that investment is in new subsidiary not Ubisoft. Why is that ? Well because Tencent wants Ubisoft IPs not Ubisoft employees.

[HiRed_ThuG]

Origineel geplaatst door Wise:

They are getting bailed out. But the kicker is that investment is in new subsidiary not Ubisoft. Why is that ? Well because Tencent wants Ubisoft IPs not Ubisoft employees.

The subsidiary is controlled by Ubisoft.

[dulany67]

Origineel geplaatst door Black Fashion:

Origineel geplaatst door 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.

You almost sound like you believe that.

[Stan]

Just keep the games coming. Just don't make them mobile what Chinese love.

[dulany67]

Origineel geplaatst door HiRed_ThuG:

Origineel geplaatst door Wise:

They are getting bailed out. But the kicker is that investment is in new subsidiary not Ubisoft. Why is that ? Well because Tencent wants Ubisoft IPs not Ubisoft employees.

The subsidiary is controlled by Ubisoft.

Not entirely. Ubisoft can not sell the ip or sell further equity in the newly formed subsidiary as tencent has the right of first refusal. Tencent has put a leash on the ip.

Ubisoft now has to walk a very fine path where everything they produce is profitable or any further bailouts will result in tencent owning more of the ip.

[Wise]

Origineel geplaatst door HiRed_ThuG:

Origineel geplaatst door Wise:

They are getting bailed out. But the kicker is that investment is in new subsidiary not Ubisoft. Why is that ? Well because Tencent wants Ubisoft IPs not Ubisoft employees.

The subsidiary is controlled by Ubisoft.

I doubt they invested so Ubisoft can be losing more money. Share split doesn't mean that the deal can't further specify how the new company is controlled.
But maybe Ubi is still in full control which means that Tencent just play long game, now they prevented Ubi getting different investor and next time they go under Tencent will get control. Because you can be certain that Tencent does have priority to the new subsidiary shares would Ubi be selling them.

[Donpadre]

Origineel geplaatst door Vixziค็็็็็n:

Origineel geplaatst door 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.

I'm not gonna read all that sheeeet.

[VhagarTheLastOne]

Elon Musk is going to be Main Director? This partnership could work.

[HiRed_ThuG]

Origineel geplaatst door Wise:

Origineel geplaatst door HiRed_ThuG:

The subsidiary is controlled by Ubisoft.

I doubt they invested so Ubisoft can be losing more money. Share split doesn't mean that the deal can't further specify how company is controlled.
But maybe Ubi is still in full control which means that Tencent just play long game, now they prevented Ubi getting different investor and next time they go under Tencent will get control. Because you can be certain that Tencent does have priority to the new subsidiary shares would Ubi be selling them.

Nothing that you have said changes or challenges the facts of my claim.

Origineel geplaatst door Cyberpunker:

Elon Musk is going to be Main Director? This partnership could work.

Everything Elon touches eventually turns into a massive pile of.....

[Stan]

Origineel geplaatst door Cyberpunker:

Elon Musk is going to be Main Director? This partnership could work.

Hardly, He can barely keep is rockets from blowing up, i highly doubt he would know anything about making games.

[Butcher]

Origineel geplaatst door Black Fashion:

Alt-righters are big mad.

If you will keep being this unoriginal your job will be taken not even by an AI, but by a simple script:
https://steamcommunity.com/sharedfiles/filedetails/?id=3453527616

[VhagarTheLastOne]

Origineel geplaatst door Stan:

Origineel geplaatst door Cyberpunker:

Elon Musk is going to be Main Director? This partnership could work.

Hardly, He can barely keep is rockets from blowing up, i highly doubt he would know anything about making games.

Its worth to try. Trump could be angel investor.

[lockwoodx]

25% is the beginning of a hostile takeover while Ubi is limping and rife with failure. Tencent wants to be the first ones who get the opportunity to buy them outright when the time comes.

[Dagtag]

Origineel geplaatst door lockwoodx:

25% is the beginning of a hostile takeover while Ubi is limping and rife with failure. Tencent wants to be the first ones who get the opportunity to buy them outright when the time comes.

You aren’t the business expert you like to think you are.