“We’re excited to broaden our engagement with the founders, the Guillemot household, as Ubisoft continues to develop immersive recreation experiences, and to carry a few of Ubisoft’s most well-known AAA franchises to cellular,” Lau stated in a information launch. “This settlement additionally aligns with our philosophy to take a position alongside inventive founders with full confidence that they may lead their corporations to new heights.”
The Chinese language conglomerate’s funding into Ubisoft included 200 million euros in shares and 100 million euros in capital. For a complete of practically $300 million, Tencent has additionally secured a 49.9 % financial stake and 5 % voting rights in Guillemot Brothers Restricted.
This deal is not going to lead to a change in management: The Guillemot household continues to have unique management over Guillemot Brothers Restricted and Tencent is not going to acquire a seat on the corporate’s board of administrators. On the identical time, Ubisoft’s board of administrators has authorized Tencent to extend its direct stake in Ubisoft from 4.5 % to 9.99 % of capital and voting rights, with the situation that Tencent can not share its gross sales for 5 years and can’t enhance its stake past 9.99 % for eight years.
Shenzhen-based Tencent is among the largest and strongest online game firm on the earth through its possession of “League of Legends” creator Riot Video games, 40-percent possession of “Fortnite” creator Epic Video games and investments in dozens of different studios. Per week earlier than the Ubisoft announcement, Tencent acquired a 16.25 % stake in FromSoftware, the award-winning Japanese developer of “Elden Ring” and the Darkish Souls collection.
Guillemot assured his staff Tuesday that Tencent’s elevated stake in Ubisoft wouldn’t affect how the corporate is run, in line with an inner memo to Ubisoft employees shared with The Put up.
“Moreover, it’s vital to notice that this settlement is not going to influence our governance,” Guillemot wrote within the memo. “Tencent isn’t taking a seat on the board of administrators of Ubisoft nor Guillemot Brothers, nor changing into concerned in our choices or everyday operations. Tencent has a popularity as a constructive shareholder that already helps many different main online game creators in the identical manner. Our technique and inventive selections stay our personal, and Ubisoft’s success continues to depend upon all of us becoming a member of collectively to give attention to our goals and the various alternatives in entrance of us.”
Guillemot went on to say that Tencent’s elevated stake into Ubisoft would bolster the corporate’s efforts to develop overseas “whereas preserving our identification and values.”
The previous few years have been tumultuous for Ubisoft. In 2020, Ubisoft was embroiled within the gaming business’s #MeToo motion as employees throughout the firm shared tales of sexual harassment and misconduct. Guillemot vowed to implement safeguards to guard staff transferring ahead in an inner memo for workers despatched in July 2020, however months later, Ubisoft employees reportedly noticed few adjustments.
In August, the Tencent reported its first dip in income in its 23-year historical past — a 3 % drop total and 1 % drop in gaming income, to a complete of $19.78 billion. The Chinese language tech large has additionally been dealing with harsher restrictions in its house market, prompting it to hunt out extra alternatives overseas.
Annabelle Timsit contributed to this report.
