What you need to know
- Tencent has acquired a 49.9% economic stake in Guillemot Brothers Limited at €300 million (297.4 million USD).
- Guillemot Brothers Limited is a holding company with the largest stake at Ubisoft, founded by the Guillemot family.
- As part of the deal, Tencent will be allowed to increase its stake in Ubisoft to 9.99%.
- In a press release, Tencent revealed that it hopes to bring more of Ubisoft's AAA franchises to mobile.
Chinese conglomerate Tencent has increased its stake in Ubisoft, entering a concert with the Guillemot's holding company.
In a press release spotted by Axios' Stephen Totilo, Tencent announced that it had acquired a 49.9% economic stake in Guillemot Brothers Limited at €300 million (297.4 million USD). Guillemot Brothers Limited, which holds the largest stake within Ubisoft, remains exclusively controlled by the Guillemot family.
Tencent will now be allowed to nearly double its stake in Ubisoft from 4.5% to 9.99%, the former of which it purchased in 2018. This news comes just a month after Reuters reported that Tencent had plans to increase its investment in the French video game publisher.
The press release also noted Tencent's desire to bring more of Ubisoft's AAA franchises to mobile systems.
“The team at Ubisoft has shown an impressive ability to consistently create world-class entertainment along with a diverse portfolio of brands that include some of the most successful franchises in the industry,” says Martin Lau, President of Tencent. “We are excited to expand our engagement with the founders, the Guillemot family, as Ubisoft continues to develop immersive game experiences, and to bring some of Ubisoft’s most well-known AAA franchises to mobile. This agreement also aligns with our philosophy to invest alongside creative founders with full confidence that they will lead their companies to new heights.”
Ubisoft CEO and co-founder Yves Guillemot says that this deal "reinforces Ubisoft’s core shareholding around its founders and provides the company with the stability essential for its long-term development."
In addition to bringing more of Ubisoft's games to mobile, Tencent hopes to launch several of Ubisoft's PC titles in China.
Jennifer Locke has been playing video games nearly her entire life. You can find her posting pictures of her dog and obsessing over PlayStation and Xbox, Star Wars, and other geeky things.
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