Ubisoft Checked Out by Chinese; Tencent is Spending Cash Again
Ubisoft has come partly under the wing of Tencent. This is already more than a simple investment. The Chinese giant paid a considerable sum for it.
Source: Unsplash | Alexander Grey
Tencent has been spending a lot of money lately, investing in other gaming-related companies. I recently reported on the fact that the corporation bought out 16.25% stake in FromSoftware, studio known for such hits as Elden Ring or Dark Souls. Now Tencent has invested indirectly even more money in the giant that is Ubisoft.
The investment in Guillemot Brothers Limited, the company that manages the French game publisher and developer, amounts to €300 million. Tencent paid 200 million euros in shares and 100 million euros in capital, which resulted in the company holding a minority stake that gives the Chinese company 49.9% of the economic shares and 5% of the voting rights in Guillemot Brothers Limited. At the same time, the board of directors of the French company approved Tencent to increase its direct stake in Ubisoft from 4.5 by 9.99% of capital and voting rights, subject to the conditions that Tencent cannot resell the stake for 5 years, while increasing its capital above 9.99% for 8 years.
Tencent's other investments
In addition to the aforementioned purchase of FromSoftware stock and the current investment in Guillemot Brothers Limited and Ubisoft, Tencent has been successful in acquiring other gaming companies in recent years. Examples include owning an ownership stake in Riot Games, as well as a 40 percent share of profits from Fortnite. It is possible that this is not the end of the Chinese company's big investments.
