In its latest earnings report, Ubisoft has noted that the deal between the company and Tencent that involves the latter becoming a minority shareholder in the recently-formed Vantage Studios is currently under way, and that all the conditions required for it have been satisfied. In the earnings report, Ubisoft once more emphasises the €1.16 billion deal between Ubisoft and Tencent that will “enable the acceleration” of Vantage Studios.
“The transaction with Tencent is on track to close in the coming days,” wrote Ubisoft in its earnings report. “All conditions precedent have been satisfied. At closing, the €1.16bn investment will deleverage the Group. It will also enable the acceleration of Vantage Studios’ IP growth, support selected investment opportunities across the rest of the Group, and facilitate ongoing reorganization efforts.”
Further in the report, a statement by Ubisoft co-founder and CEO Yves Guillemot referred to Vantage studios as “a key element” when it comes to Ubisoft’s future plans. He also noted that this deal with Tencent marks a “pivotal milestone” for Ubisoft thanks to its stronger position from the €1.16 billion deal.
“This marks a pivotal milestone in Ubisoft’s transformation, significantly strengthening our financial position by bringing in €1.16 billion of cash, enabling the Group to deleverage, as planned,” said Guillemot. “It will also empower Vantage Studios to accelerate the growth of our three flagship IPs under a dedicated leadership team.”
“Vantage Studios represents a key element of the transformation of the company towards a new operating model built around Creative Houses. We will have finalized the design of this new organization by the end of the year. These Creative Houses will be autonomous, efficient, focused and accountable business units, each with its own leadership, creative vision and strategic roadmap.”
In his statement, Guillemot also spoke about how some of Ubisoft’s releases had performed over the year. While he noted that Rainbow Six Siege had been experiencing “softer trends” in what he calls “an intense FPS environment,” he went on top say that other releases in the Ubisoft catalogues had strong performances. This includes the Assassin’s Creed franchise, as well as The Division 2.
“Our portfolio showed contrasting dynamics this quarter, with softer trends for Rainbow Six Siege, reflecting a phase of evolution for the game in an intense FPS environment, offset by strong performances across the rest of the catalog,” said Guillemot. “The Assassin’s Creed franchise exceeded our expectations, confirming its positive momentum and ability to engage players over time. The Division 2 also continued to perform strongly, benefiting from the momentum of the Battle for Brooklyn DLC, with the game’s first semester already exceeding last year’s annual bookings.”
Ubisoft had announced the name of its new subsidiary – Vantage Studios – earlier this year. Back in October, the company also confirmed that the subsidiary will be taking on the responsibility of working on Ubisoft’s biggest franchises – Assassin’s Creed, Far Cry and Rainbow Six. The subsidiary’s leadership is comprised of co-CEOs Charlie Guillemot and Christophe Derennes, and it is in charge of various studios across Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia.
