The Chinese gaming giant is set to acquire a 49.9% economic stake with 5% voting rights in Guillemot Brothers Limited, the holding company of Ubisoft’s founders.
Tencent’s investment in Guillemot Brothers Limited amounts to €300 million ($297 million).
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Separately, Ubisoft has authorised Tencent to raise its direct stake in the Assassin’s Creed publisher from 4.5% to 9.99% of the capital or voting rights, a stake it won’t be able to further increase for a period of eight years.
Ubisoft said the partnership with Tencent “covers the development of mobile titles from several of Ubisoft’s major franchises and the launch of several of Ubisoft’s PC titles in China”.
The French publisher’s governance is unchanged by the deal and the Guillemot family retains exclusive control of Guillemot Brothers Limited.
In April it was reported that the company behind the Rainbow Six and Far Cry series was attracting takeover interest from several private equity firms.
And the following month it was claimed that the Guillemot family was considering teaming up with a private equity firm to acquire the company.
“There has been a lot of talk around consolidation in the industry and in Ubisoft in particular,” Ubisoft CEO Yves Guillemot said during the company’s full-year earnings call in May.
“Our overall position is clear and well known. As we said last February, we have everything we need to remain independent. We have the talent, the industrial and financial scale, and a large portfolio of powerful IPs to create massive value in the coming years.
“It has provided us with the plan to build strategic partnerships with the biggest players in entertainment and tech. The current speculation is putting in plain sight the real appeal and value of our assets and of our value creation potential.
“As mentioned before, as a public listed company, it is best practice for our board to review any offer in the interest of all shareholders and of our great teams.”
It will include a look at the recently confirmed Assassin’s Creed Mirage and is expected to offer an update on Assassin’s Creed Infinity, the large-scale collaboration between Ubisoft’s Quebec (Odyssey) and Montreal (Origins and Valhalla) studios.