Tencent is acquiring a bigger stake in one of the larger known entities in the gaming arena, Ubisoft. The Chinese conglomerate has been making an aggressive play in growing its footprint in the gaming industry in recent times. In addition to acquiring a bigger stake in Ubisoft, Tencent has been investing in everything ranging from gaming companies like Tequila Works and FromSoftware to patenting 2D video conversion systems.
Ubisoft has often come under the spotlight over acquisition prospects throughout the years. Prior to 2018, Ubisoft faced a hostile takeover from Vivendi. Then back in May, the Guillemot family reportedly prevented another takeover attempt of Ubisoft. Meanwhile, Tencent has also had its eyes on the company for a while and was already expected to grow its stake within the company with the idea of becoming the largest shareholder of Ubisoft.
The company is investing €300 million in Guillemot Bros, which is a 49.9% stake in the company run by Ubisoft's co-founders and has the biggest shareholding in Ubisoft. Accordingly, Guillemot Bros' stake in the company could reach 29.9% whereas the combined shareholding with Tencent's stake would mean that the two entities claim the bulk of the holding within Ubisoft. However, the new investment doesn't grant Tencent a board seat in either Guillemot Bros or the Assassin's Creed maker.
Further, Tencent is now allowed to more than double its stake in Ubisoft to 9.99%, though the company can't sell its stock for five years. Following the investment, the Chinese conglomerate is also set to bring several Ubisoft AAA titles to mobile along with some of the publisher's PC games to China. While specific details are yet to be known, the announcement falls in line with the company's mobile gaming ambitions, especially considering Tencent and Logitech's partnership for a handheld gaming console.
In related news, Ubisoft is currently prepping up for its big Ubisoft Forward event on September 10 where it will reveal more details of the much-hyped Assassin's Creed Mirage along with several other titles like Skull and Bones. Meanwhile, the French company also updated fans on its plans to discontinue online services for some of its older games, extending the deadline for several of these titles by a month. Regardless, now with Tencent claiming a bigger stake in Ubisoft, it will be interesting to see what the direction of the company will look like in times to come.