When it comes to the games business, there are many ways to do things. You could be an indie studio, a giant publisher, or a collective housed under a bigger umbrella, and the bottom line is that as long as it succeeds, it works. For Ubisoft, which has been facing financial struggles, there is serious consideration to create a new entity to drum up investment and to be the new home of its best-selling franchises.
The news comes via Bloomberg, which cited reliable sources close to the matter. This will see the publisher behind blockbuster franchises such as Assassin’s Creed, Rainbow Six, Far Cry, Watch Dogs, and The Crew find a new home for these properties.
Under this new structure, ownership of these IPs would shift from Ubisoft to the newly established company. To secure additional capital, Ubisoft plans to auction off small shares of ownership in this new entity to other corporations, with Tencent already being identified as a confirmed stakeholder.
If this strategy is implemented well, Ubisoft hopes to seek a valuation that will surpass that of the parent company. How that will come to pass remains a mystery, with many moving parts still in motion at the current stage. This will not only bring the money in, it will also potentially keep the founding Guillemot family holding the keys to the kingdom as well.
The news follows reports allegedly revealing that key franchises from Ubisoft are up for sale, with industry giants EA and Microsoft already circling. With this new entity, that will not be a situation that will be entertained.
The market has responded positively to the news, as Ubisoft’s stock price saw a 6% increase at the time of reporting. While it remains uncertain how this move will unfold, the prospect of a more focused and financially robust entity managing Ubisoft’s most valuable franchises has sparked interest among investors and industry observers alike. What that means for fans is a whole other matter.
