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Tencent invests in Ubisoft, will bring its franchises to mobile and PC in China – Effinate Games

About a month ago, it was reported that Tencent was looking to own a large part of Ubisoft. Now we know that its investment is more of a pivot to increase its stake in the company. Tencent is not taking over Ubisoft, but it is increasing the number of shares.

Axios’ Stephen Totilo reported the news on Twitter. “[Tencent] heavily invests in [Ubisoft,]” he writes, “announcing a new investment of 300 million euros in Guillemot Bros, the company run by the co-founders of Ubisoft.” This investment allows the Guillemot family to retain control of Ubisoft, something it has sought to retain since May 2022. Tencent’s investment in the group is 49.9% of the shares, which does not give it control.

As Totilo points out in the thread, Tencent will also get no board seats at either Guillemot Bros or Ubisoft – although of course its increased investment will still yield a profit. However, Tencent’s stake in Ubisoft will rise to almost 10%, while the Lomvies could reach almost 30%. That adds up to a significant overall vote – though not large enough to veto or directly control Ubisoft’s direction.

As a result of the new investment, Tencent will bring some of Ubisoft’s franchises to the mobile and PC markets in China. It makes sense: the biggest gaming company in the world is an ideal choice for Chinese localization. The likes of The Division Resurgence and the recently announced Assassin’s Creed Mirage are likely candidates. We should hear more about these two titles at Ubisoft Forward 2022.

This isn’t the only recent Tencent investment that made headlines. Sony and Tencent now own shares in Elden Ring developer FromSoftware, as both have made significant investments in parent company Kadokawa Corporation. While the company still owns 70% of its shares (thus retaining veto power and control), Sony has a 14% stake and Tencent subsidiary Sixjoy has 16%.

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