After
years
of
taking
a
beating
and
even
speculation
as
to
whether
Ubisoft
could
collapse,
the
embattled
French
publisher
is
creating
a
new
spin-off
company
dedicated
to
its
three
biggest
IP:

Assassin’s
Creed,
Rainbow
Six
and

Far
Cry.

There
had
been
reports
prior
from
Bloomberg
that

Ubisoft
was
considering
a
move
like
this.
People
speculated
that
it
would
be
a
way
for
the
Guillemot
family
to
retain
control
of
their
biggest
IP
should
Ubisoft
fold,
or
that
it
could
be
the
first
step
in
Ubisoft
selling
off
some
of
its
IP.

Now,
though,
we
know
for
sure
that
Ubisoft
is
indeed

creating
a
new
company.
Not
only
that,
but
Ubisoft
investor
Tencent
will
also
play
a
part
in
this
new
venture
to
the
tune
of
a
 €1.16bn
stake,
equating
to
roughly
25%.

According
to
Ubisoft,
they
are
valuing
the
spin-off
company
at
€4bn,
which
is
considerably
more
than
Ubisoft’s
current
market
valuation
of
€1.7.

“Today
Ubisoft
is
opening
a
new
chapter
in
its
history,”
Ubisoft
CEO
Yves
Guillemot
wrote.
“As
we
accelerate
the
company’s
transformation,
this
is
a
foundational
step
in
changing
Ubisoft’s
operating
model
that
will
enable
us
to
be
both
agile
and
ambitious.
We
are
focused
on
building
strong
game
ecosystems
designed
to
become
evergreen,
growing
high-performing
brands
and
creating
new
IPs
powered
by
cutting-edge
and
emerging
technologies.”

Martin
Lau,
President
of
Tencent,
said
“We
are
excited
to
extend
our
longstanding
partnership
with
Ubisoft
through
this
investment,
which
reflects
our
continued
confidence
in
Ubisoft’s
creative
vision
and
exceptional
talent
to
drive
sustained
success
in
the
industry.
We
see
the
immense
potential
for
these
franchises
to
evolve
into
long-term
evergreen
game
platforms
and
create
engaging
new
experiences
for
gamers.”

As
for
Ubisoft
itself,
it
will
focus
on
“nurturing
the
development
of
iconic
franchises
including Tom
Clancy’s
Ghost
Recon and
The
Division,
accelerating
the
growth
of
top
performing
titles
and
leveraging
disruptive
technologies
on
selected
new
IPs,
while
continuing
to
deliver
state-of-the-art
production
game
engines
and
online
services.” 

That
leaves
a
lot
of
IP
that
Ubisoft
does
not
specifically
mention
,
potentially
lending
credence
to
the
idea
that
Ubisoft
will
seek
to
sell
off
some
of
its
IP.

Ubisoft’s
press
release
also
details
the
following
provisions
relating
to
Tencent’s
involvement:

“A
5-year
lock-up
undertaking
on
New
subsidiary
shares
held
by
Tencent,
unless
Ubisoftno
longer
owns
a
majority
of
New
subsidiary
voting
rights
and
share
capital
–
Ubisoft
may
not
cease
to
hold
a
majority
of
New
subsidiary
voting
rights
and
share
capitalfor
a
2-year
period
–
Customary
share
transfer
provisions,
including,
a
right
of
first
refusal
to
the
benefit
of
Ubisoft,
a
right
of
first
offer
to
the
benefit
of
Tencent,
tag-along
right
to
the
benefit
ofTencent,
and
drag-along
right
to
the
benefit
of
Ubisoft
(subject
to
certain
conditions)
–
Call
option
to
the
benefit
of
Ubisoft
and
put
option
to
the
benefit
of
Tencent
in
the
event
of
certain
change
of
control
of
Ubisoft
approved
by
its
Board
of
Directors
–
[Exercise
price
will
be
the
higher
of
(i)
the
fair
market
value
of
New
subsidiary
shares
and
(ii)
the
same
EBIT
multiple
as
that
in
the
change
of
control
transaction
of
Ubisoft;
it
being
specified
that
for
the
call
option
there
will
be
a
specific
minimum
price
protection
during
the
first
4
years
following
closing
of
the
transaction
with
Tencent.