Is Ubisoft’s Push for Major Investments in ‘Assassin’s Creed Shadows’ Spin-offs a Case of Too Little, Too Late?

Ubisoft seems to be exploring opportunities to secure financial backing for a new business initiative that capitalizes on some of its top franchises, including Assassin’s Creed. This insight comes from a Bloomberg article, informed by sources knowledgeable about the situation.

According to Bloomberg, the French gaming giant is actively seeking bids for this new venture, aiming for completion by the end of the month. These bids are expected to involve a minority stake, with Tencent, a well-known player, reportedly interested. Tencent already holds a 9.99% stake in Ubisoft and has been a key figure in discussions around Ubisoft’s strategic future.

Bloomberg’s journalists, Dong Cao, Vinicy Chan, and Benoit Berthelot, mention that Ubisoft might be pursuing a valuation for this new branch that could exceed the current value of the main company, although they note that such outcomes are still under evaluation and no firm decisions have been made yet.

When Bloomberg reached out to Ubisoft for comment, the company responded by sharing its quarterly earnings report. The report included a statement noting that Ubisoft is “reviewing various transformative strategic and capitalistic options to maximize the value of Ubisoft’s assets and franchises for all stakeholders.” However, Tencent chose not to comment on these developments.

Assuming Bloomberg’s information holds up, this could be a daring strategy for Ubisoft. By funneling its prized properties into a new entity, the company might be seen as consolidating its most valuable assets into an entity designed to attract investor attention. This move could also help distance Ubisoft’s most acclaimed IPs from some of the controversies that have marred its reputation. Just earlier this month, three former Ubisoft executives faced trial over allegations of psychological and sexual harassment. This trial has been pushed to June. Creating a new business entity might help dissociate these valuable IPs from such controversies, making them more attractive for investors.

There’s also speculation on how Assassin’s Creed: Shadows might influence these business maneuvers. The game’s success could be pivotal for Ubisoft, potentially determining whether the company experiences a renaissance or continues its downward trajectory. Given that Assassin’s Creed is reportedly among the IPs included in this new plan, the stakes have never been higher for the game to perform well, both critically and commercially.

Assassin’s Creed: Shadows is slated to release on March 20, which means the industry won’t have to wait long to see its impact on Ubisoft’s fortunes this year.