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Tencent Poised to Take Major Stake in French Publisher Ubisoft
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Tencent Poised to Take Major Stake in French Publisher Ubisoft
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.To get more latest news about tencent, you can visit shine news official website.
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.
Tencent will lay off an undisclosed number of staff on its mainland China non-fungible token (NFT) marketplace team and adjust the platform’s business strategy, as it prepares another NFT marketplace serving overseas users, sources close to Tencent said, Chinese financial media Caixin reported on Thursday.