Tencent looks poised to become the largest shareholder in Ubisoft, as it flies to France to secure a deal with the Guillemot family, who founded the firm and currently control 15 per cent of its shares. According to a report by Reuters, the Chinese juggernaut is aiming to become the largest single shareholder of the Assassin’s Creed maker, and looks likely to get its way. It currently has a five per cent stake in the company.
Apparently, the organisation will pay over the odds to secure the shares, and will also look to other public shareholders to strengthen its position. “Tencent is very determined to nail down the deal as Ubisoft is such an important strategic asset for Tencent,” a source said. The titan – which also owns social media platform WeChat – already plays a significant role in the video game industry, across companies like Epic Games, Riot Games, Supercell, Sumo Digital, and more.
But it’s earmarked Ubisoft as its next primary target, after seeing its domestic revenues decline. This is because up until recently, Chinese regulators had ceased approving new game monetisation licenses, effectively freezing Tencent’s efforts in its home country. Throughout all this, however, the firm saw a four per cent increase in international video game revenue during the first quarter of this year, making its flirtation with Ubisoft easier to understand.
Was thinking about how Ubisoft would benefit if someone bought them AND the holder of the nemesis system patent from shadow of Mordor
I don’t seem any good coming from this. The Chinese market is so censored.
I'm going to get hate for this but I'm glad it's not Sony, Micro or Apple that will get ubi.
Interesting how the Guillemot's vehemently fought against a Vivendi takeover but are apparently welcoming a Tencent one. Guess the money is just way more this time around.
Well that’s horrible news.
Yah all around terrible news
@RawnDawn Agreed, people can moan about China all they want but it's better that Ubisoft aren't bought by a company that will lock content to a few platforms.
Because if the past six months have shown us anything (besides the willful infliction of human suffering), it’s that doing business with countries run by thin skinned, megalomaniacal dictators is a great move. It’s always a toss up whether our comeuppances are born more of greed or stupidity.
@AdamNovice Console exclusivity versus concentration camps, name the bigger evil!
@AdamNovice “ people can moan about China all they want”
If this goes through, I highly doubt anyone at Ubisoft will be able to moan about China. Or make reference to anthropomorphic bears. Oh bother!
@Milktastrophe A lot has changed since, then, too I guess. We had all the workplace scandals since, and it doesn't seem like Ubisoft is in its healthiest position right now.
If Tencent is offering to pay more than the shares are worth, I guess it's tempting this time.
Whelp. We're never getting that AC Japan game now....
@NEStalgia Far Cry Taiwan looks promising though.
People who think Sony should make acquisitions to make them unique must have slept the last years. I will not be surprised if at the end of the PS5 life cycle the company only leaves its own platform and becomes a content producer for everything that gives a high return. :-/
@nessisonett We're talking about gaming business here, not about what's happening with Taiwan or Hong Kong. From a purely gaming perspective I'd rather Ubisoft or any publisher is bought by a company that will keep their franchises multiplatform.
That is not a good idea.wtf ubisoft.word up son
@Smiffy01 IRL tho....
@SplooshDmg Yeah. So..... When's Switch Pro?
Man this is highly unfortunate. I've always said everyone has a line they won't cross when it comes to questionable economic connections (I can't think of a better name for situations Iike this, sorry!) This might be my line. I've been a huge AC fan since the beginning. I even stuck with it through entries I didn't like as much. And obviously Tencent has their tendrils in other companies as well. But the Chinese government having say over a series that is literally all about history? That sounds like a bad idea. Plus the friggin concentration camps. Feels bad man.
AC became so bland and unfocused when they tried to please/represent everyone. Hopefully they’ll stick to one, well-written character (male or female) in the next entry and ditch this one-size-fits-all approach.
@SplooshDmg Woow, your inside knowledge is amaze!
@AdamNovice Its better it stays independent. Now they are owned by the Chinese goverment.
@AdamNovice People go apes*** about the goverment but when a company that is controlled by the Chinese goverment its ok.
Its not like the Chinese companies have any form of independence because they dont.
Even better they stay independent the lowest form of acceptable is not be owned by a company that has no respect for the basic human rights.
People can say keep politics out of my games sometimes you just dont have a choice to not mention it.
@Flaming_Kaiser Can I pleeeease be cynical now? You know you need my cynicism now! Admit it!
@SplooshDmg no no no no, it's all inside information. See you heard from a source (GrumbleVolcano) that wishes to remain anonymous, and you can't confirm for sure, but it's a reliable rumor!
@NEStalgia If you use it with real cases yes its not like anyone says the Chinese goverment is decent entity. Damn they even have concentration camps.
Well looks like I won't be buying anymore Assassins Creed games.
Everybody is making a joke in the comments, and I'm sitting here like the Chinese government is in the middle of a massive videogame crackdown. I don't know what specific details there are, and I hardly care, but I do know that a number of Chinese developers are leaving China in order to continue their creative process. The biggest name I've heard is MiHoYo, the developers of Genshin Impact, setting up shop in Singapore.
I don't know what any of this means for Ubisoft, but it probably won't make much of a difference to you or I.
@Flaming_Kaiser If you're always cynical, humanity will never disappoint you!
@SplooshDmg you should check out Chris Robin's channel, so many inside rumors!
Its like a match made in heaven really. When bland met mediocre....sparks were in the air
@NEStalgia I know but it still makes me sad and thats not the right way to life.
@Flaming_Kaiser Yeah but the right way to life died half a century ago and now the threads of it are on fire. Probably made of asbestos.
Will never buy a ubisoft game again if that happens, even if more expensive I will always buy a product that's not Chinese or made in China if possible, or not at all if no alternative is available.
@JudgeDredd impossible to say at this point as we don't know how much of the company Tencent is buying. At the very least this should result with them having as much power as the Guillemot's currently have. Technically unless they can secure more than 50% of the shares (maybe more depending on the company's bylaws?), they can't just overrule other shareholders, but if enough shareholders align with Tencent or simply don't cast votes, then it's most likely gonna be Tencent gets whatever it wants.
If China invade Taiwan in a similar fashion to the Russian invasion of Ukraine there's going to be a lot of gaming companies going eerily quiet.
"While some Playstation 5s are still manufactured in Japan there is a lot of them manufactured in China. The consoles are manufactured directly by Sony as well as some help from Foxconn." All this talk about tencent,china and human rights violations and concentration camps are all valid reasons granted as to why its incredibly morally dubious to get behind this aquisition but everybody forgets that some ps5's are actually manufactured in china too..i guess you all should check your ps5's origins and trade them in for more "ethical" models..
@Northern_munkey And many of us are typing on our phones assembled by child slaves and wearing clothes sewn in sweatshops. It’s entirely unreasonable to expect people to make sure every single thing they buy is ethically sourced, especially in this cost of living crisis. I’d love to have the money to buy all Fairtrade food and so forth but that’s the perils of unfettered capitalism - if slave-made goods can be sold cheaper due to the lack of worker pay then they’ll naturally push out competition who have morals as they’ll have to charge more for the same product. The most any of us can do is speak out when we can, and at least try to shop ethically when our circumstances permit.
Not a good sign. China has been deeply involved in corporate content creation. The Assassin's Creed series provides educational materials through Discovery Mode.
@nessisonett oh i agree i really do and should we remain silent? But its easy to bemoan everything thats wrong with everything in the world but as you say yourself we all benefit from others misfortunes..i was not having a go i was just merely pointing out that one of the things we cherish most (ps5) is manufactured to a degree in china and that a chinese company is buying up game publishers thus tarnishing the oh so solid rep sony already has (sarcasm) and everybodys up in arms about it..again..what should we do?
@Northern_munkey I'm actually surprised to hear any playstation equipment is made in Japan still. I didn't think it was. In the US the last made in Japan ps kit I saw was PS2s and dual shock 3s. Haven't seen one since stamped Japan. Thought they closed up generations ago there
Nintendo held out longer, but same. Everything switch is China now. Not many electronics aren't from China. Most of the components can only be found in China.
That's the interesting part about China. If relations go sour global technology rolls back to 1968 overnight. The result is the world might be willing to overlook absolutely anything they do, and I mean anything, because the world is now entirely dependent upon them.
@NEStalgia those are good points..food for thought..
@InvaderJim so buying a console made is China is ok, but not a game? Interesting line you draw there.
@naruball i guess sony just lost a customer..oh and ubi-cent too lol..
I’m not surprised people give their two cents on ten cent but I hope Ubi can find a Joan of Arc who isn’t afraid of stakes.
I did my best in early morning. ☕️🥱
Rather tencent than Microsoft, atleast ubisoft games will still release on all platforms
Also the stake tencent are after won't be enough for them to decide what games ubisofts studios can and can't create, it will be enough to deter potential buyers though.
They own 40% of epic and they don't have any input on what goes onto the epic store or who can use the epic engine etc so some peoples concerns are needless
Think of the children!
That's part of the reason Tencent has been diversifying so much out of China. They want eggs in many baskets as the Chinese market is too volatile and out of their control, it's smart business on their part. Just because the Chinese market is censored doesn't mean games made/owned by Tencent will be over here.
I don't like tencent cause they murdered paragon. That game had so much potential. It wasn't everyone's cup of tea but for some of us it came pretty close to sliced bread.
Im not sure how I feel about this, but I dont think its a good thing?
Looks like Ubisoft ran out of games they could squeeze more micro transactions into & placed them in their company
@naruball as I said if possible, plus the most of the money for console went to Sony. Have my reasons why I try to boycott Chinese items mainly around the ecological and environmental damage they cause in Africa.
I'll check back in five years to see if people are still OK with this.
Another one that I think will end up 100% under someone at some point, looking in this case like Tencent. Obviously I would rather they went under Sony or Microsoft, but the way the industry again, I think we will have a future where more and more will go under someone else. Sony will acquire. Microsoft will continue to acquire. Tencent will acquire. Embracer will acquire. We will see if Amazon/Google/Apple decide to enter too.
@AdamNovice If you are seriously suggesting that the only problems with China are Taiwan and Hong Kong, then you are living under a rock.
People being deliberately ignorant of such things represent everything thats wrong with todays society.
@AdamNovice wow you really didn’t think before you posted this one 😂.
Take the L.
I actually like Ubisoft.
Some concerns about some of what I hear about the culture of course. But generally I like their games.
I draw a line when a genocidal, human rights abusing, Marxist regime takes a stake though.
Yeah I have to suck it up when I buy my phone or console. Not much choice but to buy something made in China, and a big chunk goes to Japan in fairness. Same with a lot of products - I'm sure the Chinese only get a small cut from my iphone.
But I can choose not to buy some games. Plus given the censorship, they will be even more watered down and "safe" than they've already become. So won't be a loss...
Was hoping MS would pick them up.
Yeah no. Just look at wechat for example. Trencent software is extremely invasive, say bye bye to any of your privacy. Not touching anything owned by tencent at all.
Well guess there goes Assassins Creed - shame really, despite their shortcomings I found Odyssey, Origins and Valhalla very enjoyable.
Ignoring all of the negative comments, hopefully this means Ubisoft will get more funding and support for their games!
Well, I haven’t been in love with much of what Ubi has done lately anyways, but it’s still a shame to see.
Well tik-tok is chinese, yet almost everyone uses it.
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