Ubisoft has confirmed that its €1.16 billion transaction with Tencent remains on track to close in the coming days. The deal involves Tencent acquiring a minority stake in the company's new subsidiary, Vantage Studios, which houses major franchises like Assassin's Creed, Far Cry, and Rainbow Six Siege. This announcement follows a delay in Ubisoft's recent financial report, which sparked speculation but was attributed to auditing issues.
Background on the Deal
Vantage Studios, unveiled by Ubisoft in October, serves as a dedicated hub for the publisher's flagship titles. The studio will be led by co-CEOs Charlie Guillemot, son of Ubisoft CEO Yves Guillemot, and Christophe Derennes. The investment aims to bolster Ubisoft's financial position and support the growth of these key intellectual properties.
Confirmation and Context
The confirmation came in Ubisoft's latest earnings report, addressing concerns from a surprise delay in the previous week's financial disclosures and a temporary halt in share trading. Ubisoft clarified that the delay stemmed from challenges with new auditors and revenue reporting procedures, dispelling rumors of a potential full acquisition by Tencent.
Yves Guillemot described the partnership as a "pivotal milestone in Ubisoft's transformation, significantly strengthening our financial position by bringing in €1.16bn of cash, enabling the Group to deleverage, as planned." He further noted that it would "empower Vantage Studios to accelerate the growth of our three flagship IPs under a dedicated leadership team."
Future Plans
Looking ahead, Ubisoft plans to reveal its new operating model in January, centered around Creative Houses. Vantage Studios will be the inaugural house, emphasizing principles of autonomy, focus, and player centricity to develop these franchises into annual billion-euro ecosystems.